On the two LCP Transitions,
1) To Eng-Release - Make sure No check boxes are NOT checked for Obsolete, Increment Version and Invrement Release.
1) To Obsolete - Make sure check box is checked for Obsolete,
Increment Version and Invrement Release are not checekd.
Just to close the loop for the benefit of the community, the problem was resolved by matching the LC map to the following image. Note that the Names of the states and transitions are not important, but the designations (the check marks) are. All of these transitions are mandatory. For additional information please see the help file for the sync tool
Product Lifecycle Management