For test purposes, I temporarily turned-off “Follow Mute”. Now, when I mute the individual channels, those channels do not mute in the ME-1’s…as expected.
So, this tells me that there is needs to a firmware update that needs to fix this issue.
I was back in front of the console today and “Follow Mute” is set on it as well. It is only on firmware version 1.90. I was going to update it but the iMac could not mount the usb drive. I am not expecting version 1.95 to fix it but I will keep my fingers crossed.