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I have a non-Nav radio (1 SB in an '05 coupe) into which I installed an XM module from and '06 Vert. Same symptons as yours but I had the local Master Corvette Mechanic reprogram the BCM in the car and the XM module has worked ever since.
I would tend to think that the Nav radios, also operating on the CAN bus would require the same reprogramming to activate the XM module.
Could you give me the contact info of the Master Corvette Mechanic? My dealer could not get my module unlocked. Maybe they can call yours.
Thanks,