OK,
Cl-1 is here.  Can use simulator to download program and effects files to LMs in locos.  The HC-2 then can be used to update buttons and change lighting etc, it sees the updates on the LMs just fine.  I guess this would work to update files, etc but does not explain the initial problem.  I may send HC-2 in for testing to RE, but since this system works fine and loads more quickly, not sure I need to.
Jim