Above mentioned design flaw is resolved, using height-based vs. able-based cursor, and retaining the midstate caching optimization. This is also more efficient than the initial attempt. Address/scripthash/scriptpubkey subscriptions are all succeeded, including idempotent subscribe and progressive subscribe after history changes with incremental status accumulation.
Also the first notification (server-initiated message) is now integrated into the unit tests, with the unit test sending a node event, causing server subscriptions to evaluate and send as applicable, and then receiving the json-rpc notification. Triggering the notify at the server is just: notify(node::chase::organized, {}); and handling it is just: const auto message = receive(); where the message is the json-rpc notification from the server.