No, it's oscillating. I don't know if that matters in this case.
Looking at the scope displays, the P-fet gate (the blue line) just drops part of the way to ground when the switch is closed. Then it drops all the way when the N-fet turns on. But as the input voltage is reduced, the GS voltage during the first knee gets closer to the threshold voltage, and the response is delayed because the P-fet just isn't turning on as fully. Then finally, when the input voltage is low enough, the threshold voltage isn't met at all, and the P-fet never turns on. Which means the N-fet never turns on.
Also, it seems odd that the level of the first knee on that blue line doesn't vary more with the input voltage. In any case, increasing the capacitor value should lower the knee level. But I don't know why the circuit doesn't behave more like the simulation, or only does so when the scope probes are attached.