By the way, just as a follow-up, to not leave you hanging if you have a similar issue...
After some experimentation, the circled option above was indeed the solution. The Commissioner clicked and solved the problem of the AI not handling the minors. The trick is that this had to be done at the MAJOR league level and did not appear to do anything separately at lower levels.
Problem solved and now when GM choose to let their minor league staff handle rotations and lineups and promotion/demotions, they do actually handle that.
Again, no way to know whether this is on/off until you experience an anamoly, but hope this helps.
Thanks for the input.
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