Ok,
My conclusion:
Either the spst switch is throwing it up 500hz off frequency (27.2055) upon settling, or the type/length of wire in using is causing it to settle at 27.2055 instead of 27.2050.
Removed wires for switch all together, switch no longer in circuit. Took another brand new 1000uf 25v cap (this one is rated at 85°, the other was 105°) and soldered it directly to the flapper of VR7 and the negative lead to ground side of R197. Settles dead on frequency (27.2050), perfect.
Removed everything from the spst switch and soldered on just the positive lead of the 85° 1000uf 25v cap to the center leg of the spst, and then a wire to the other leg of the spst that goes to the flapper of VR7. I then ran a separate wire from the negative lead of the cap to the ground side of R197. Settles at 500 hz (27.2055), with switch on, issue.
I even tried the added variable resistor. I tried a 1k ohm first, very little change. Tried a 50k ohm, no change. Tried a 500 ohm, very little change.
Guess I need to figure out whether it's the switch itself, wire type or wire length.