Been distracted by life and just now getting back to this.

I tested the wires for continuity from the rear module thru the flexible hatch wiring to the plugs that goes into the latch mechanism. All were fine so that eliminates problems in the hatch wiring. Also the wires as the exit/enter the hatch look in good condition.

Upon plugging the connector to the latch mechanism back in I messed with the door remote again and did in fact get some noise from the rear hatch. I then decided to lock/unlock the door using the remote. It seemed to lock and then when i tried to unlock I could see some smoke (thru the rear window) coming from the latch mechanism area and it did not unlock. I then couldn't unlock the door at all! Luckily, I had all the trim off so crawled in the back and manually pushed the unlatch lever. It now looks like the pushrod is not contacting the latch lever. I suspect the motor may have somehow overextended resulting in the lever no longer contacting the lever and frying the latch motor (hence the smoke!) at the same time

So this all seems to point to it being the latch mechanism that is the problem and needs to be replaced.

So next problem - I'm struggling to remove the latch mechanism! I have removed the three screws that hold the latch mechanism on but can't figure out how to remove the mechanism since the actuator rod goes thru its frame. I've tried to loosen the actuator rod pivot mount (there is one screw) to provide more wiggle room so the latch mechanism can be wiggledout but the pivot mount has some form of blind fastener in addition to the bolt which I can't seem to figure out how to release. Any suggestions?

I'm going to buy a secondhand latch on eBay (unless there are suggestions of a better source) but will need to remove the latch to install it!