you could do me a favor and try a very recent build,
The settle failure at 02:11 actually has a very simple explanation. The dither settle timeout of 60s is too short given the time the mount actually needs to settle after large dithers.
Here are the details of what we see in the log:
A dither request came in to PHD2 at 02:10:25.298, requesting a 6.0 pixel dither with settling criteria of less than 3.0 pixels error for at least 18 seconds, with a timeout after 60 seconds. The 60-second timeout meant that the deadline for settling to complete is 02:11:25.298.
In the camera frames up to 02:11:07.492 the guide error was > 3 pixels.
At 02:11:09.498 the guide error dropped below the 3.0 pixel threshold. It needs to stay below the 3.0 px threshold for 18s to meet the requested settling criteria.
The guide distance continued to stay below the 3.0 px threshold until phd2 handled a camera frame at 02:11:25.485. The gude error had stayed below the 3.0 px threshold for just under 16 seconds, not quite to the 18s required, however the deadline for settling had passed, and phd2 reported that settling had failed -- indeed it had failed to settle within the 60s time limit.
There's an easy fix for this: update your settle timeout to a larger value. I would not hesitate to set it to a much larger value, like 300s or even 600s.