Really curious about what these debug messages mean ... I don't know how to read them

I have performed the steps you suggested.

The rule ended up being deleted and a new version created in its place, which did work.

However, the system does not seem to 'pick up' the message sent from the lock about its change in status (manual unlocking event).

It's actually intermittent.

Direct to the Hubitat at 40 kbps, with 53 neighbors. Hm.

I'm going to make a similar experiment with the other lock:

and if it works, I will go back to 'S2' mode on the front door lock, despite that being a huge PITA.

S0 or S2 should both work, but S0 has a couple of back and forth messages every time something is transmitted. S2 has everything in one packet so it is faster and probably less susceptible to transmissions not making it. My front door lock is a Yale with S0 and has been working fine, since there is usually only 1-2 uses per day its very low traffic. My two Schlage locks are even lower use, but have not noticed any issues. The garage service door will see a lot more use this summer once it warms up, will be nice to be able to unlock it using the keypad instead of going around or through the house like in the past.

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Also, the 1/3 number of packets increases the battery life of the locks. I have two BE469ZP locks paired S2, converted (by swapping out the electronics module) from BE469NX paired S0 on my C-5 when I got my C-7. Battery life went from a few months to over a year. Still working fine after my migration to C-8.