Best educated guess is that the firmware on the new LCDs is not directly compatible with all features on the controller firmware; the settings either are not being written to the controller from the display, or the display is not writing them to the correct location or in the correct format, or some other data-handling issue is occuring between the two.
It works with the other LCD because it's firmware *is* compatible (was it bought with the controller?).
I don't know if there is a way to update firmware on controller or display, other than the OpenSource firmware available here on the forum for KT controllers and various displays, but that is not the same as the OEM firmware for them....and I dont' think you can go back to OEM fw afterward (it's not available anywhere to re-flash, I think).