Unless I’m missing something the 1040 won’t work regardless of setting it to P25 auto and regardless of the “D” mode listing. The system is Phase 2.
The system is *capable* of Phase II, but Phase I FDMA talkgroups are present, so it's running in Phase I mode with TDMA capability. It will still do Phase II TDMA groups if you add them, making it a mixed-mode system, but it won't run exclusively Phase II until you have no more FDMA groups.
The system type being Phase II really has nothing to do with the actual format of the system besides it has support for TDMA talkgroups, but it doesn't have to have any TDMA groups in order to be listed as Phase II.