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I did some more looking into potential causes of this issue. It looks like the issue should be one of two things.
The multiplexer signal is not explicitly set to the "multiplexer" signal type in NI XNET Database Editor. Additionally the multiplexed signals should be explicitly set to the multiplexed signal type.
The multiplexer signal is not in the signal list array leading into the NI XNET Create Session (conversion).
Trevor H. Technical Support Engineer National Instruments