1.94v confirms the 2v for a red LED.
1.94v + .54 = 2.48v
3.3v - 2.48 = .82v across the output MOSET in the controller, seems high.
.54V ÷ 220 Ω = 2mA thru the LED ![]()
Try a different output, one that never had a LED without a series resistor during your experimenting.
Which way are you wiring the LED, as D5 or D6 in the image below (UNO is shown, ignore this fact) ?