CJ, yup. You got it correct. There was a firmware "upgrade" that disabled the ability to mix Di2 10/11spd derailleur versions and there is no way to revert the firmware once upgraded on the devices.
Much of this bane is discussed here:
CarltonBale.com » Shimano Ultegra and Dura-Ace Di2 Electronic Shifting ? Everything You Need to Know
FWIW,
Our recent upgrade to UDi2 11spd (from UDi2 10spd) has been working flawlessly. Love it. Even the slightly narrower chain helped with a chainring bolt clearance issue I had with my same-side-drive. The new FD position tuning is a great bonus as well. Totally happy.
While doing our Di2 upgrade I did find there is no problem mixing UDi2 10spd shifters with any of the road derailleurs. That was a temporary setup and now we are running all 11spd components.
Regards.