I setup a test site and was able to successfully get W3 to serve cached pages using page enhanced. So, it would seem my server configuration is fine and it may be a plugin (I did my test using the same theme I have).
I did try disabling all plugins but the essentials I need: Google Analytics for WordPress, Jetpack by WordPress.com and WordPress SEO and still no luck. There has to be something I'm overlooking; which is entirely possible after hours and hours of working on this.