Hi Ayearp
Our support took a look at the ticket I created for you and think the issue might be due to being on openvz or virtuozzo. Due to how those two systems work there can be permissions issues, as you suspected.
Please try the following
~iworx/bin/ini.pex --set --section iworx --index no_chattr_append --value 1
There may be a need to manually clean up the failed account-add home dirs