Reran the sequence and the same thing happened so I guess that's the glitch theory ruled out. I have a theory that once the delay starts I could click connect all in PHD2 and see if that solves the problem.
I was just about to try the above method, reduced the delay to 300s and strangely when it started PHD instead of saying server connected it now says mount connected.
Currently rebooting the PC to see if that resets it, perhaps manually connecting to PHD2 has triggered something