Well, I received more info on this (related to the last option mentioned above), from Jessica (Dynon Technical Support Engineer).
The background here is that Garmin used to have a CDI INDICATOR TYPE selection on the legacy GNC 255A/B units. This format was crucial for the previous Dynon Serial interface because we required the GNC 255 to be configured for CDI INDICATOR TYPE: NONE. This config allowed the CRS needle to be utilized from the GNC 255 without issue.
When Garmin released the GNC 215, they removed that config menu and the device defaults to a serial indicator type. Using the existing Dynon GNC 255 config with the GNC 215 resulted in the course needle not being present, unless you first updated the CRS through the GNC 215 CDI menu OBS adjustment. This would get the needle to show up on the SkyView display, and it would continue to work as long as you only updated the CRS/OBS on the GNC 215 and NOT the SkyView display. As soon as you would update the CRS on the SkyView, within 3 seconds the connection would break and GNC 215 would report OBS course lost.
The solution for this was for Dynon to change our software to support the serial interface with the GNC 215. This is what we did. But we did not roll back and replace the existing GNC 255 configuration.
Software versions prior to 17.3 require the combination of the RS-232 serial interface + the ARINC 429 navigation interface. What we have not tested is ARINC only. That may not provide all of the information like the tuned nav frequency in the HSI SOURCE box. Some of that data comes through RS-232.
The difference is in the configuration. Normally the GNC 255 would be configured for SERIAL IN DEVICE: GNC 255 A/B, and the SERIAL IN FUNCTION set to NAV 1. When you use the SERIAL + ARINC interface with the GNC 215, you still configure the GNC 215 on the serial port as a GARMIN GNC 255 A/B under SERIAL IN DEVICE. But you set SERIAL IN FUNCTION to NONE. You do this because the NAV 1 function comes through the ARINC instead.
On 17.3 and above, the serial communication change has been made and the Garmin GNC 215 is officially selectable from the serial in device list. When the serial in function is set to NAV 1(2,3,4) (On 17.3+) the serial-only interface will work correctly.
Everything below 17.3 requires the ARINC to avoid running into the communication error with serial only.