OK, so I took EVERYTHING apart on the suspension and inspected the CVs, inner and outer tie rods, sway bar/links, bushings, and the rack. Noise was vibrating near the tie rods and I believe it was going to the rack. I reassembled, this time WITHOUT the top strut spacer. Voila, the noise is 99% deadened.
The noise was definitely a Rack noise, i'm sure the rack would've went if I kept it that way.
Truck sounds so much better now. The 2" spacer on the bottom is still in to even it out a bit, but I feel disappointed that RCs products are doing this to their customer's trucks. I understand tweaking the suspension is asking for trouble, but for it to immediately wear down the rack like that is frustrating.
So, keep it in and repair the rack (~$1000 part) every now and then, OR take that top spacer out OR bare with the noise.
P.S. - This pertains to the 2.5" level kit, any actual suspension lift is beyond my knowledge.