Further testing revealed that the issue seems to be fixed. As with my initial test before the phone app was conflicting. Force stopping the Jabber phone app allowed the status to change to 'away' when locking the PC.
UPDATE....I was certain i had no other instances running, but it turns out that I was indeed signed into jabber on a remote machine. Once i signed out of that instance my status started showing correctly when locking my current machine. doh!
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