The compatibility level making the sql collation list not contain SQL collations is a bug
. I managed to make a package when I tried to go for one leaving the compatibility level empty with the collation you specified, and haven't been able to make that fail.
If you could give me some more details on exactly what you're doing when the package fails to execute? (i.e. C# or exe, what database version on each side, what things you change on the last screen of the wizard)