Red Dimmer LED Switch Behavior seems wrong

Which driver are you using, specifically? A link would help. It sounds like Inovelli’s, but theirs does not have “advanced” in the title. I wrote one that does, but this doesn’t sound like it.

This may matter, though possibly not (see below).

Regarding the behavior you’re seeing, that sounds normal to me. The switch/dimmer can only do one LED “effect”/notification at a time. (On the Z-Wave side, there is a single parameter that stores a calculated value corresponding to a sort of sum of the options you’ve selected.) When one is set, it overwrites the other. Unless you have an app or driver that is dome some special caching of its own and re-applying a previous value for this parameter, one overwrites the other, and clearing any also thus returns the bar to normal. Some people have asked for a feature that sounds like what you’ve want, but I’m not sure if they’ve committed to doing it or not, and I’ve also never been convinced of the necessity given that this logic can also be done on the hub side (say, with a rule or custom app in your case).