Thanks for the reply’s. Turns out our Anderson valve is installing upside down. Drycamp setting means city and city means dry. Go figure.
If your water is flowing normally, that's good. But on the NORMAL setting, the Anderson valve connects the tubing from the fresh tank to the tube going to the water pump. If your tank was empty, or you had an air leak at the pump, and the pump was ON, that would explain the air. If the pump was OFF, it's not at all clear to me how air could be coming out of the faucets.
Also, unless something's changed recently in the valve design, there's a secondary channel so that city water flows when set to NORMAL, and the pump will pull water out of the fresh tank when set to CITY. So it would make at most a slight difference in water flow for the valve to actually be in NORMAL mode while appearing to be in CITY mode.
Although it's working now, I don't know that you're at end game yet.