Just checked back in with another Arduino developer in my company. I noted previously that he did NOT see this issue but he also did NOT have ny Arduino connected at that time. Once we introduce an Arduino into the equation he can replicate all these same observations!
So, currently, we can't do any Arduino programming or development unless our machines are disconnected from the Internet? WTF?
I guess its time to fire up Wireshark to see exactly who the Arduino IDE is trying to talk with and what info its requesting/exchanging...