I finally tracked down the culprit in a maddening issue causing trouble shifting the rear derailleur. It was acting like a bent derailleur hanger, where it could be adjusted correctly for 4 or more gears in a row, but the rest would either ride up or down like too much or too little tension. I noticed the original derailleur hanger was misaligned when I finally figured out a great way to work on the bike. I clamp it on the TFT tube below the headset, and have a hook in the ceiling I hang the rear wheel on. This puts the front workings in the exact same position I use everyday at work on upright bicycles. So I used the DAG and bent the hanger. Issue solved for about a 40 mile ride, then it came back. Now there was about .5mm of play in the hanger/fork/carbostay sandwich, changing the angle of the derailleur throughout the shifting range. Final debug involved replacing the hanger with the extra one included with the bike.
FINALLY! I found the problem, though I cannot immediately solve it. The mounting surface of the SRAM Red derailleur is about 2.5 to 3mm larger in diameter than the cutout on the hanger. I have to grind it out I guess, or ask Cruzbike to begin manufacturing a compatible hanger. In this photo you can see the circular mark created by the larger diameter derailleur:
FINALLY! I found the problem, though I cannot immediately solve it. The mounting surface of the SRAM Red derailleur is about 2.5 to 3mm larger in diameter than the cutout on the hanger. I have to grind it out I guess, or ask Cruzbike to begin manufacturing a compatible hanger. In this photo you can see the circular mark created by the larger diameter derailleur: