Ok, so the plot thickens....
Got some 125 grain field points so I could actually match apples to apples hopefully to my broadhead which is 125 grain.
Did my best to measure my arrow setup and I'm confident it's around 395/400 grains.
Scope is Hawke XB-1 (1-5x32), 20 yard hashtag is first line. No reason to believe it's been dropped or damaged in any way.
Long story short I finally was able to get yardage marks to work when I dialed it down to 265 fps. Which to me is super slow for that setup but it worked. 20 yards was dead nuts on, 40 yard hash mark was very close (as close as I could hold it steady).
So, just for grins and giggles I measured the amount of drop using the same 20 yard marker at 40 yards. The amount of drop was ~13.75". Which according to the website below puts my arrow at ~ 320 fps, which is much more believable to me.
Learn how to calculate arrow speed without a chronograph. This method uses the FPS of your arrow and its total weight (including broadhead).
www.wasparchery.com
I don't know what to think anymore. But I do know that with the speed indicator at the 265 fps, the yardage hash marks finally work. I didn't check at 50 yards as I was soaking wet from the humidity and it was getting dark.