your absolute value will prevent it from every being truly sinusoidal. The model is outputting exactly the math that you have implemented in Simulink. You need to find a different mathematical representation of your current waveform that does not require a divide by voltage since this is a single phase AC system and voltage will always cross 0.
I think the issue is that you are using a distortion model intended for three phase networks and doing them for a single phase network. If you did this with three phase values you should not have to divide by zero as V is not the instantaneous voltage of any phase, but the overal voltage magnitude of the system.