This is incredibly fascinating!
I am very familiar with Dolby A, B, and SR. And the headaches involved with having to deal with tapes that have been dubbed with the wrong settings. Sometimes multiple times. Virtually rendering it to garbage. I would use Dolby SR when recording with my Studer 2" 24 track. It was a godsend. But not if it was not decoded.
Incorrect encoding and decoding of Dolby A was an issue in the audio/video world for years. I say video, because the 1" helical scan video machines were also equipped with Dolby A encoding and decoding.
I am also familiar with Ovation guitars since I am a guitarist myself.
I am not sure, however, that I am following the chain of events correctly. Exactly which pressings were pressed with Dolby decode incorrectly engaged? Are the original pink inside label Island pressings correct? Or were they pressed with incorrectly mastered plates also? And if I am understanding you correctly. The Analog Productions pressings were mastered correctly without Dolby A decode incorrectly applied? I just want to make sure that I have this sequence straight. So that I will purchase a correctly mastered pressing. There is nothing worse than a Dolby A encoded tape which has not been decoded. Other than a tape without Dolby A encoding, with Dolby A decoding incorrectly applied.
And thank you for the information about this. This is truly an amazing revelation. And one enormous f**k up on many levels.