Terry, I have an x-touch mini which has similar rotary encoders with LED position indicator.
I have the problem where if I adjust the knob, then the LEDs also adjust using “local control”. Like you, I also have a binding that sends the midi value back to the LED lights for that knob. The problem is that the local control and the received midi fight each other, especially if I have any curves applied in C3. Same race conditions problems with lit buttons.
Does the BCF2000 have the same issue, or can you switch “local control” off?
I get around this, by delaying the MIDI LED value from C3 to the LED by 100ms by sending it through BOME. This is a nuisance!