Wow, such positive feedback.
I found what was wrong.
The KO BSx2 series servos don't get along well with Futaba telemetry radios. That servo goes into programming mode as soon as it powers on to a Futaba rx. The RSx2 servos don't have this problem which is why that one worked.
To use the BSx2 with Futaba, first turn it on, then unplug the servo from the rx and plug it back in while still powered on and it works!
I said forget that. I ain't doing that every time so I tried it with one of my Airtronics MT-4s and it works perfectly but I had to use a modified ext cable (Futaba female/JR male) because the KO servo has the Futaba style plug. Imagine that, has the plug to a radio it's incompatible with but I'm sure KO transmitters use that plug too.
So I could use this servo in one of my other cars that I'm running Airtronics in but I have to use that ext cable which I don't want to do or trim that tab off the plug to fit the JR style hole. The guy at KO America said it wouldn't void the warranty. At least I have an email chain in case somebody over there changes their mind about that.
My 3rd option is to return it but with all this glorious feedback, I might keep it.