There are *five* kinds of text in Motion/Final Cut: "Type" (just "regular" text), Paragraph, Path, Scroll and Crawl.
The Basic Title is set up as Type. It will recognize the Left/Right/Center alignment controls, but not the vertical alignment controls. *Most* of the titles that are provided with Final Cut are of this type of text. There are a few Lower Thirds that are set up as Paragraph text.
Vertical alignment is used with Paragraph layout and uses the "bounding box" (this is a different layout control that does not appear in the Type layout method) as its basis of alignment. You can tell the difference when activating the text object for editing on screen when you see a heavier outline with small square controls on the outline edges and corners and a Ruler usually appears over the text:

[Note: sometimes the ruler may not appear, but there should be a small "ruler" icon at the top right of the Viewer which you can use to toggle its appearance:

]
This is what the text looks like when the Vertical Alignment is set to bottom:

The text just lines up with the bottom of whatever bounding box you set up for your text.
If you have Motion, creating a Basic Title with Paragraph Layout is simple because the basic initial template, ironically, has the text set up as a lower third using the Paragraph Layout Method. All you have to do is Save the template as Basic Paragraph or something similar.
If you don't want a lower third basic setup, you can delete the text object and start a new one by selecting the Text Tool and clicking and dragging a rectangle in the Canvas. This will automatically create a new text object with Paragraph layout (using the rectangle you "drew" as the size parameters]. Set up the initial layout you want for the text and publish that.
If you already have a template with a basic Type text layout, you can convert it to Paragraph by going to the Text tab, Layout tab, and selecting Paragraph from the Layout Method parameter.

HTH