Well checking out the connection status I realized that Speed Pulse is at 0.
No matter if I am using the bypass that Speed Pulse should go up as I am driving correct?
Yes, you are correct.... speed pulse should go up and down with your speed, they didn't hook it up or they hooked it to the wrong wire.
Will not having speed pulse hooked up cause the issue I described above?
Oh, that's a tough one. Generally I would say that it would not. I used mine for a few months without the VSS wire hooked up and it seemed fine to me. But your position might be "off". It might think you are 20 feet to your right or something and just locking you to the road if it can and every so often it's too far off to put you off the road.... maybe?
How is your signal strength? Many Sats? Is the antenna on the roof or on the dash? Could be a sat signal issue..... Maybe?
I know you have recalibrated your position, but find a well known intersection or land mark on the map, relocate your position and make sure it's right were you are supposed to be and try that again.... Maybe?
Not having the VSS hooked up shouldn't cause that, it's not helping accuracy, but it should not cause what you see by itself.
Also, Installation position is coming up as, "Excessive Vibration."
That could be causing something. I have never seen that. That's from the Avic shaking so violently that it's hard drive parks itself or some other internal sensor sees a lot of vibration and causes this error. I have mine installed in a Lincoln Aviator, not a Town Car, I would say it rides close to your Denali. It should not do that. Either they install isn't secure or there is a problem with the Avic... just a guess.
Any ideas? I like to get the expert opinions before bringing it back to the shop....
Oh, sorry, I didn't see this part... "expert opinion"? You will have to wait and see if someone else posts something, if you asked for a loser/hack's opinion, I'm your man! 