As the OP, this issue has certainly raised a couple questions - the first one was about the readings and that one was answered when I figured out I needed to use the low pass filter feature on the Fluke 87.
But after that was done on the freewheeling motor and the readings were as expected with the V/hz programming, a mechanical load of the machine was added to the experience, the motor and the AB powerflex combination protested the install by surging and making weird humming sounds - that question is not able to be answered .... so, in a sort of desperation, I changed the wiring from delta to wye and changed the AB 'program' to 480 volts and 60 hz (the usual settings for these VFDs) and the motor responded nicely: No surging & No weird humming sounds.
Making me wonder why I bothered with the programming idea of 480 and 120 hz. Wont know if the delta drive can do - cause the equipment owners prefer AB. But until the motor can successfully operate the mechanical machine load with the product load, the final arrangement will not be known and which we are awaiting the commissioning process as they add the product .... to learn if this will be the answer.
The delta drive software has a graph with defined points to help with the determination of the settings and where in the program to place these values ~ whereas the AB Powerflex software wizard simply has a table that allows the nameplate information to be entered - but no graphical interface like the Delta software includes.
I prefer the idea of a graph with a line having a point at 480 and 120 crossing through 240 and 60 (halfway up the graph) ~ as opposed to the delta wye wiring swap 'cause the delta to wye voltage ratio pivots on the value of 1.7 and not 2. Using 1.7, the wye should be optimum at 240 times 1.7 or around 400 volts - and not 480 volts.
But if I can't use the AB Poweflex VFD to more accurately provide the requisite voltage at the desired frequency - I will resort to the olde school method of motor lead swapping the connection from delta to wye.
As soon as I find out if the motor can perform I will certainly update this post.
Thanks to all for the assistance and to the good, it was learned the DC bus on a 480 drive is way higher value than the DC bus on a 240 or 208 drive. That is indeed a consideration to be taken under advisement.