The fix was easy, though knowing how the thing got messed up to begin with is not. The fix was:
In the Init Ability: 1. Delete the Default Control State control. 2. Copy the Default Indicator State Control (which was still working properly). Relabel and recaption the copy to be Default Control State. 3. On the Block Diagram of the Init Ability, wire the replacement Default Control State control to the wire vacated by the original.
I expect, if neither of the default state controls had been working, I could have just dropped copies of the type def State Control.
Ton, Thanks for your help! I appreciate it. You kept me thinking and moving.