In your inner panel, Visible = false.
<asp:Panel runat="server" ID="pnlEmailComplete" Visible="false"> *(change here)*
So, when you press the TESTING button, ModalPopupExtender correctly displays the external panel, but it displays an invisible internal panel, so you can’t see anything on the screen.
<asp:Panel ID="pnl" runat="server" style="display:none;"> *(this is ok)*
To fix, just pull Visible = false from the external panel (pnlEmailComplete)
Hope this helps!