Problem fixed!!! I ran a test using the pioneer unit, arranging the tech and resouces so the civ could build it at the start of the game. So I created a new Settler unit called 'Settlers", set the setting for the same as the settler unit. Took all the civs off the settler unit and added civ to the Settlers unit and it worked. MOD is running fine now!
Not sure what the problem is, or why the ALs would not build the settler unit, but by creating another unit to take its place allows the game running normally.
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