@Jason
I don't know, but the simplest, if you can, is to try another pedal (even no Yamaha).
(As you mentioned possible hardware issue, I have already encountered erratic behaviors with faulting pedal)

I could do that - but it wouldn't help anything no matter how the testing goes (I'm not trying to change the behavior on my keyboard - this feature or behavior as is does not present an issue for me). Incidentally, here an EV5 and FC3A - which acts just like an expression pedal with a spring - both have the same behavior as the previous testing.

I'm going to say that if you have the latest firmware and an FC7 that this grabbing works (looks like it does for several). And if some future reader with an FC7 sees it doesn't grab - upgrade/check firmware as a first step and retest.

I think I've tested enough that it's unlikely any fault of the expression pedal although there is a very low probability chance that the FC7 I happened to have escaped QA/QC testing. I doubt it - although stranger things have happened.

If Sean wants to abandon the pedal position "discipline" approach - and wants to add another piece of gear under the keyboard - then the FC7 or any number of other analog "POT" based expression pedals will fit the bill and provide the "grabbing" initially requested.

@Jason:
In case you continue your search, my Montage firmware version is 1.51.1

Jason
I understand the FC7 should solve the issue but as it stands the FC300 takes up all of the space under my studio desk. As I said, that does quite a lot for me so I'm not going to replace it with an FC 7 and don't have room for both. So discipline it is!

As mentioned, I'm not searching. Just trying to make sure information provided is correct and takes into consideration root causes for observations to help posterity.

Sean - discipline is probably better because the grabbing thing is something a "natural" instrument doesn't do - so if you are accustomed to analog stuff - you have to relearn some things to deal with that feature. If grabbing is appealing or not depends on your reflexive gesture and if it aligns with the digital re-do.