Bear in mind that Servotronic units are programmed with a level of sensitivity and your two might not be the same. There are several sets of sensitivity settings, the choice of which depends on the steering box according to Tech 2 so it's possible that you now have the "wrong" settings for your box or vice versa.
Each set of settings has 3 values that can be programmed for "Minimal assist", "Normal" and "Maximum assist", so your replacement unit might not have had the same settings and that could account for the difference in behaviour.
Having said that, something weird is going on. It sounds to me like the MID is losing the speed input temporarily now (Hence the "F" for "fail" in the display).
This could be something such as the ground signal for the servotronic (or anything else that sits on the speed signal) being poor, such that, when it starts consuming current, it drags the speed signal outside the normal range and prevents other devices from seeing it.
Does everything else behave if you completely remove the servotronic box? (note:steering will be heavy).
Kevin