The issue as figured out. I found in the second to latest release notes for the ITSI API a juicy tidbit that was more clearly spelled out. The known issue is not documented in the release notes as clearly to know this is what you have to do moving forward.
If you want to break the episode via API, you must pass a breaking event into the tracked alert index. This can be accomplished using this example:
Unfortunately, we were not pulling out the itsipolicyid and instead linking our external ticketing system to only the unique itsigroupid. So we are now re-developing to link both fields per episode into our external ticketing system.