Just to close the loop on this should anyone else have a similar issue. we have been talking with @roblynds and Caddx, and it looks like the Moonlight VTX unit is faulty so this is being replaced.
So if anyone else has this issue its best to reach out to Caddx support and they should be able to confirm the issue and arrange a replacement (if ordered from us, they will ask you to return the faulty unit to us, and we will send you a replacement).