The only progress I've made so far is this:
Based on the suggestion of a TAC Engineer, run the following command to enable class 4 power negation via LLDP -
#configure lldp ports [port] advertise vendor-specific dot3 power-via-mdi with-classificat...
I'll second Mike's issue. I'm experiencing the same with a 2702i and an X440-48P. The suggestion to change the LLDP interval to 5 seconds hasn't resolved the issue.
Has anyone had any luck getting this to work?