Nate,
The \\srv-vm-egr1 share really exists and both the FMI Merged License.lic and Merged FMI 2017 License.lic are located there.
On the Config Services tab, the reason that the path to the file is \\SRV-VM-EGR1\Autodesk Network License Manager\FMI Merged License.lic is because this is a server and not my local machine. If I change the path on the Config Services tab to C:\Program Files\Autodesk\Autodesk Network License Manager\FMI Merged License.lic, it gives me an error that "The license file/license path does not exist where specified.

I guess this is because it is trying to find the file on my local machine and the files are just not there.
When I am running LMTools, I am accessing the share from my local computer rather than using a Remote Desktop Connection to access the server. I just go to \\srv-vm-egr1 in win explorer, browse to the Autodesk Network License Manager folder and click on the lmtools.exe - Shortcut to start the LMTools.

I really think that even though it is saying at the bottom of the dialog that it is using it is using the "FMI Merged License.lic"...... it is really not. Rather it is using the "Merged FMI 2017 License.lic" file because of the number of licenses that we have available. I can trick probably trick LMTools to use the file I want by renaming my "FMI Merged License.lic" to the other, but I would like to understand WHY it is not using the file specified in the Config Services tab.