Thanks Jim. That does appear to be the case...

I just wanted to throw this out there... I decided to keep the Fretlight a bit longer and have actually found it useful now, when using the chord and scale library on their mobile app.
*I pulled the bridge off and found that the ground wires weren't properly seated. I fixed this and it took care of a lot of the LED feedback noise. It's definitely still an issue, but it's now tolerable if I use the middle position and turn the tone down a bit.
*After a week, my brain adapted to understanding where the LEDs are lit up. However this does require holding the guitar in a non-traditional way to see the fretboard (angled so you can see between the strings). However It's useful for learning scales and arpeggios.

I still don't know if I could use it to learn songs without some sort of 'Wait' function.
Anyway - sorry to go off topic.
I do still think that PG music needs to update their documentation to state that BIAB only works with the wired version of Fretlight.