The issue isn't the insert, but that the "dado" set (really just the two blades) was unable to move when in the configuration for the 3/8-inch cut. I had my air filter, dust collector, and my hearing protection in place so somehow I didn't hear anything of alarm. When I went to raise the blades into the insert, the insert was lifting (which would now make sense if the blade wasn't spinning) so I shut everything down to add another board on top as I had only a ¾ poplar board spanning the insert. When I went to re-try, it had tripped so no starting it. At that point I realized the blades weren't able to move, apparently due to the teeth orientation.
Thus, the concern isn't with the insert as much as if I had done something to the saw by having a blade combination inserted that wasn't able to rotate. I haven't had a chance to get back into the shop to look at the saw, but will look over everything and hopefully be able to move forward. Will check what status causes the glitch (and as Lazyman notes, I may now be extra sensitive to anything amiss). May also call Forrest to see about the blade set as it seems really odd that this could even occur - guessing I did something wrong in my setup.
Note that the insert actually has an "indentation" that allows for the blade to be fine until raised to make the cut - I have one of these for my regular blade and its a nice fit for the saw. Picture of the underside of the insert for dado set.