So I just got back from the dealer. After they could not duplicate it I picked up the car and was headed back to work when it started doing it again so I turned around and left it running and got the service tech and check in guy who finally saw it or should I say felt what it was doing. With no a/c on and having the heat almost at 80 / full heat it would just blow cool air. The tech told me they would need me to bring it back on Monday in the morning when they can call VW Tech Line because they could not find anything with their diag tools.
I've read a few places that it could be the temperature regulating door motor but they said it passed all tests. Any Ideas?