It was on mode 3 originally.
Granted.
When trying to diagnose a problem, I generally try to replicate the problem first. In other words, replicate the failure. If I can't do that, then I try to setup the system under test to match a known working system, i.e. replicate a success.
If the settings are exactly the same, but the failing system still malfunctions, then it's possible that the problem doesn't lie with that particular collection of settings. The malfunction may lie with the system component that's interpreting the settigns. On the other hand, if the known-working settings cause the failure to disappear, then whatever the settings are, even if they're illogical, they indicate a success.
At this point, AFAICT, you haven't completely replicated the settings I provided earlier. If you have, and the system still failed in the same way, under the same conditions, then I'm inclined to think that altering the settings may not, by itself, lead to success. Of course, that's just a gut feeling, considering there are other things that differ between my system and yours, not least of which is OS version.
Given the differences in OS version, and my own experiences in the past with Apple occasionally borking the sleep mgmt, I wouldn't be too surprised to learn there's a bug inherent tp the OS version. I also wouldn't be surprised to learn there's some magical collection of settings that causes things to work, and that collection isn't obvious, or is even counter-intuitive, or outright contradicts the docs.
As a last resort, or just as a "nuke it" strategy, you could try moving the plist file the settings are stored in to a location outside of /Library/Preferences, then reboot and see if the OS makes a default one. If it does, start over by seeing what the defaults actually do, and if the failure continues, then replicate the settings I posted.