SOLVED IT! Apparently I had to set parameter 21 Ac power type to 1, even though according to documentation, default should already be a 1.
YES I HAVE CHECKED THE HOT LINE WITH A MULTI-METER. 120VAC
I wanted to make new topic as I am working on a different light.
Just to be clear of the capabilities, I should be able to turn my inovelli down (light turns off), then go to my dumb switch and flip it the opposite way it currently is and the light should turn on, correct?
I am using a red series dimmer switch. I have set parameter 22 (13 taps on config button) to 1. (1 blink of purple).
I figured it out. Apparently parameter 21 AC POWER TYPE needed to be set to 1(neutral). According to documentation default is a 1, but i guess not. Now its working.