Thank you, HydroAir Joe, mitch22, and glycoski who's thread lead me to this one. I had the same issue as mitch22 so I put the recirc dip switches to the off position and the valve to external recirc since this is not connected to a line. Instantly the issue went away and I had hot water all the time. My question is will leaving it like this cause an issue? I don't think it will and I'm not in a rush to fix a part that seems prone to failure especially since the wait times for hot water is not vastly different without the recirc mode on. I had only gotten the 240A model as it was not a big premium and thought the benefit would be more than what I am actually experiencing now without it.
I don't really understand how the buffer tank works either as water enter and leaves through the same line at the bottom of the tank, with the tank being above the hot supply line. Is there an electric valve on the cold water inlet that shuts when the recirc pump is on? There appears to be an electrical device (parallel to the check valve) on the cold water inlet line before it T's up with the recirc line and then going on to the lower heat exchanger.
To help others who are trying to diagnose this issue because I did not think about the recirc loop at all when the problem arose. The first thing I found online was that the flow valve was a typical failure point. This looked like an easy fix so I bought one as when the flow rate was above 1GPM I would have hot water but with only one faucet open at .4GPM, the burner would not ignite and I would get lukewarm water at best. After replacing the flow valve, I got the same readings and result so flow was not my issue. I continued my search and came across this forum which lead to the check valve. I started monitoring the flow and water temps and noticed the in and out temps varied widely. After cutting off the recirc line, my inlet temp was constant and my outlet temp varied a few degrees which coincided with the burner coming on and going off. I also felt the line just before the flow valve that went into the lower heat exchanger and this would swing between very hot and very cold, which also went away without the recirc line.