How can I reset the Passlock system?

2007 Escalade ESV - It was in the shop for a while while we rebuilt the engine and now the Key FOBs don't work but the keys start the car. No flashing Passlock icon but when you manually lock the doors, from the door switch, it beeps (which is new) and the Passlock icon flashes on the dash.

When I try to reprogram the FOBs and hit the checkmark button it beeps and does nothing. No programming display just back to the Press Checkmark to Program Keys screen.

Any ideas on how to reset this? Could it be a wire or sensor not plugged in after the engine rebuild? It starts and runs like normal. No security lights at all.