So I was able to fix the issue with MS Health not recognizing/syncing with my Band 2 with a factory reset and complete fresh set up of the band. Everything has been working fine which is great.
However, I have a question...
Has anyone figured out how to make dismissing notifications on the Band to dismiss them on the phone as well (and vice versa). It's not that big of a deal I guess, but it's slightly annoying to read a text on the Band, dismiss/reply to it, and then have the text notification still on the phone.