SOLVED!
I managed to figure out the problem... although I'm not sure why it would have such a negative effect on the scripts being created.
The problem is in the "Specify the action page" during the form setup. The default is "PHP_SELF" which will not work for me as almost every one of my sites uses clean URL's using Framework. I usually need to change that to REQUEST_URI so the form will submit to itself.
During form setup... if I change PHP_SELF to REQUEST_URI the validation scripts are not applied. I have to create the form with the default PHP_SELF, then manually change all instances of PHP_SELF to REQUEST_URI and the validation will work fine.
NOTE: when using clean URL's...
PHP_SELF points to "index.php" (or whatever file is used as the host file)
REQUEST_URI points to "/en/contact-us/contact" (or however it is setup on a particular site and server)
