Turns out, the pressure in the house was 160psi.
The PRV was attached to the cold inlet on the water heater, which is fine apparently, if you want to regulate only the hot water. I installed a PRV and internal ball valve (for convenience) on the main incoming line, and now we're down to 60psi.
In that case the PRV installed on the water heater was bad but it is no longer needed.
In addition you still have an undiagnosed problem with the ECO (red button) which will return again.