So this seems to be fixed now (finally). I think the issue was the communication settings in the policy. The issue all along was that when the agent initiated a heartbeat it didn't actually seem to do anything, however if you did it from the manager the VMs would show online again until the next heartbeat interval. So, the key I think was setting the communication direction to be manager initiated, which I didn't realize was there and I'm unsure why support didn't point this out. We are now running version 11 update 1 without issue. The only difference in my settings vs. what was proposed is that my event based task happens on "computer powered on (by system)", which is new in version 11. I will keep watching this, but things have been showing online for 12+ hours. Thank you for the suggestion.
