CD74HC154 Decoder - Why does it not follow Datasheet Truth Table?

I have jumpers JP3 and JP4
JP1 and JP2 are open.

According to Evil Mad Scientist you can program with FTDI with either set of jumpers set. The "Serial" option is for 2 way communication to computer, I think:

I do see what you are saying. As I programmed via FTDI connector, the wrong LEDs were lit until I unplugged the programming connector and then the correct lights went on and A0 was low!

Then again I programmed via FTDI, different combination of HIGHs and LOWs, unplugged the programming connector and now A1 should be low but is not.

So is the Peggy2 board simply a bad design? Using FTDI programming lines intermingled with sending High Low levels to 74HC154 pins 22 and 23?