Thanks for your reply.
I admit I used a Nano and I though I would not have to resort to using the ESP01-S diagram. I could not find the frizting ESP01-S part so I resorted to the Nano.
I now wish I have taken the pen an paper route altogether. I really did not want to confuse any kind soul that would want to help out 
I will draw the diagram pen & paper style. I also think me using GPIO2 with my voltage divider is the issue.
To note, I just tried the same but with a NodeMCU Lolin v3 wired in and I get the same issue with GPIO2.