FYI - I figured out how to fix this.
Once you're watching the On Demand show, pause it and do the following:
Click options button on your remote > select closed captions> select options> select closed captions
Then change the Service Selection to CC1
It was already true on other Verizon STB and I believe is now true with 1.9.7 on all of them.
Its not a mistake. They wanted to resolve some user complaints that people had because all CC channels 1-6 had to be flicked through when normally only CC1 was english, CC2 was spanish, and rare cases CC3 other languages. Now the CC button is just on or off. If you want to adjust the options or settings menu allows you to set CC channels/fonts/etc.
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