RE:
Before I completely disassemble the XY carriage and start over, I need a check. See photo. On the top right side, with the gantry all the way back, the belts actual appear to touch. This concerns me. Is that correct? I am taking things in steps to see if I have a rub or blockage.
That is indeed not correct. It looks like you have mounted the right "linear holder" (the block which holds the two idler wheels, and attaches the X rail to the Y bearing) the wrong way round. Its straight side needs to be oriented towards the front, and the side with the step towards the back. See the two photos below which show the same part in my printer.
We just had someone with the same build issue in the German forum section. It also caused the Y axis test to fail, and once he mounted the linear holder correctly, this was resolved.

