*** Solved *** Apparently, binding doesn't get along and play well with Batch Mode. So, I removed any binding from the EditItemTemplate when in Batch Mode.
As a side note, I do agree with Eirik, where, I wish Support would give complete answers in the forum, and not refer you back to the a support ticket. The forum would be much better if Support would be more responsive, with both timeliness and substance. On some threads, they don't reply at all.
For everyone's benefit, here's the reply from Support ...
After examining the setup I have to say that the described behavior is expected. Now the Batch edit mode unlike the others is client oriented, meaning that it will set the selected value of the combo on the client. This is done by our internal logic and there is no need add a bind expression to accomplish that. Moreover using binding expressions may cause problems like the described and should be avoided as noted in this help article - "When the EditMode is set to Batch data binding expressions are not allowed in the EditItemTemplate. RadGrid will automatically set the editor's value. "
Considering the aforementioned I recommend removing the bind/eval expressions from the EditItemTemplate and letting our internal logic get/set the editor value. Please examine the information provided and let us know if additional assistance is required.