Thanks for the reply Bax. The FX40 seems to be fine.
The model memory was transferred to the CF card via the convertor. So it should just be new model. We tried a few things, but it still xfers as Motor glider and the flap settings via use of the throttle stick didn't work. Changing the model type afterwards was not a success.
I'll try to transfer it to a 14MZ and see what happens.

30mins later ..... Reading the instruction sheet again, it states

"6-3. When converting data to the T14MZ, FX40, or T12Z from either the T12FG or FX30
- When the model type selected is a glider, and the motor function is used, the model type is converted to a motor glider"

I have a logical switch assigned in the flap/throttle stick travel for rate and mixing changes, perhaps it sees this as a motor function?