Update on this problem.
Foam didn't work, so I removed the entire VUK Merlin assembly. 4 screws from the underside. I do love how all the electrical components are plugs or sockets for easy removed !! Nice
There is a curved metal scoop, half moon piece that directs the ball into the seat.
I'm guessing that I made too many direct hits with the ball into the metal scoop, cause it had bent.
To fix, I obviously bent it back, but in a clockwise direction. Wish I had taken a photo to better explain.
Now, Merlin is keeping the ball seated, 9 times out of 10. Big improvement.