I suspect the problem has to do with the importer from 6.5.5 to 7.4.1 has a problem interpreting the fact that 6.5.5 has moderators but 7.4.1 has both moderators and global moderators.

My moderators were mapped over as global moderators and all users mapped over as moderators.

The "fix" I made was to move all users from moderator to user and then in permissions lock out moderators. Now, in effect, I have only users and global moderators.