So, just an update. I got a chance to do the prescribed GM Universal Trip, described in post #6. I drove it pretty much exactly as spelled out, including annoying someone behind me when I was doing the brake off deceleration parts, even with the emergency blinkers on, on a 6 lane freeway, in the right lane, this guys was extremely annoyed I was slowing in front of him. Zero traffic, so passing me would have been a breeze. Geesch.
Anyway, results are the readiness flags are still not clear. The trip description does spell out that if the cats are weak or the battery disconnected, it may take up to five driving cycles to clear the flags. I know the battery wasn't disconnected (but maybe the Range device sets a flag that says it was, probably will never know if that is the case), so I am assuming my cats are weak (given they are originals, not a reach to conclude that) and will keep doing the driving cycles for a few more days and see if they clear.
An update to the Tow Mode effect on AFM. I can now say with authority, Tow Mode does not shut AFM off. The error of my previous tests that made me conclude it did (other than a very authoritative post on the internet that it did shut it off, and maybe some confirmation bias on my own part, wanting it to be true) was that AFM works only in 3rd and 4th gear (for sure in tow and likely always), with this transmission. My tests that misled me were around town in Tow Mode where I never got out of 2nd gear (like 30 mph and below), hence V4 was never engaged when letting off the throttle. In Tow Mode and clearly in regular mode, lifting the throttle in 3rd or 4th engages AFM. A tiny bit of clarity on a cloudy day.