So, what I have learned through all the reading, and trial and fail.
The biggest issue with these lock outs is the plastic parts, they work, but
the root of the problem seems to come from the crappy brake calipers. Seems they have a certain life span, then they lock up. When they start locking up, they create heat, which travels all the way out to the end of this top hat type lock out. it gets the plastic hot, it bubbles up(out) can't keep shape and releases it's integrity, and there is when you have the fail.Found a video on youtube, where the guy replaced one, for the same reason, which BTW, after watching the video, I looked at the one I have that was giving an issue, and yep, bubbled up.
So, as I was trying to do some maintenance on my replacement, as I noted above, the bearing retainer was kicking my ass. So I went to my go to guy for all things mechanical. Minton's automotive. He worked on trying to remove and came up with the same conclusion I had, it can't be taken out, without breaking it. So by taking out the selector screw, and the retaining spiral rings, you could push the axle shaft sleeve in just enough to put some grease on the bearing. once lubed, and put back together, it worked real smooth.
So in the end(of this mess) a full brake job will be happening. rotors, calipers, and the hydraulic brake lines/hose plus pads will be. Replace it all, so at least for a while, I can have some peace of mind that I won't(or at least I shouldn't) have to worry about it locking up, heating up and melting my hubs.