Ok: So just got a phone call from Sigsauerparts (great guys and highly recommend them) and a sig sauer tech. They watched the video I sent them and have never heard of this issue or seen it before (lucky me). We talked about what was going on and here are their thoughts:
With the things I have elimated by trying multiple fcus, slides, and modules they believe that a spring isn't keeping tension the way it should and it is allowing the manual safety to slip sometimes but not always. They said if anything were broken, which they said they rarely see in 365 fcus, it would do the issue constantly. So they are looking at pictures now of my fcu and manual safety.
my thoughts:
1) I either messed up the install, which they even said seems unlikely.
2) The spring/detent in the manual safety is not keeping constant pressure and allowing the disconnector to do something it shouldn't be.
I will update the thread again when I have more info. Great service from Sigsauerparts and Sig, talked to me with a lot of respect and I could tell they were glad it was someone on the other end with technical knowledge who could help figure this out. Guess I am just lucky duck and discovered a problem Sig has never seen before