Mark,
yes I'm totally sure that it works this way, select Mode A for XBus and you will have PWM outputs working from the receiver at the same time.
To demonstrate, I just did a quick mock-up of my telemetry stuff I'm working on (sorry for the mess )

I connected the RG731 XBus output to my ASSI device, data from that are sent to my ground station (Android phone), on this I have a servo monitor screen (shown in the video). At the same time I have a normal servo connected to the PWM outputs of the receiver. The servo works perfect at the same time as Mode A data are output from the receiver (as is decoded by the ASSI device). You can also see on the video that the receiver is in fact in mode A looking at the transmitter screen. I have also tried moving the servo to the other outputs, same story, they work

PS: The software version of the TX is 0001-0001
The receiver I don't know about...

Sorry for the crappy video quality

https://www.youtube.com/watch?v=9p9eg-lAdIU