John, does this mean that your original issue is answered? In my first response I noted that the license (online vs like) does not limit the capability of the software. It is only a license restriction. Another assumption is that Microsoft will eventually close that loophole, which is what appeared like was happening in your first question. Your second response is telling me that they didn’t close that loophole.
For compliance, a Project Manager should be assigned with a Project Online license.