How did you get into diagnostic mode?
You turn the mk2i off then on power up when you see the logo press and hold the down button only for around 20 seconds.
There seemed to be another menu by holding multiple buttons but I have yet to get back into it.
Are you forcing a sonar signal strength test on the the Mk2i or the T1 transmitter?
If the former only, that does not lessen the issue at all.
I was only stating what I looks like I found and that I have done a quick play with and not a definitive feature set for everyone's use. But from the looks of it, it looks like you can test both RX and TX...from the looks of it

Maybe it does nothing at all that would be of any benefit to anyone.
The problem with the Garmin design is with the transmitter. It switches from ANT+ above the water to sonar underwater. How can you know that a) it will correctly determine it is underwater and b) that the sonar actually works?
In my opinion this is not really a problem for me but feel free to see it as one and a few others see it as an issue as well. I have never spent too much time worried about my spg, depth gauge, straps, my computer or something else failing during my dives even though it has happened many times for many people. Of course this doesn't mean I don't either dive with a spare or have spares in my kit since failures do happen.
As I have stated, there have already been a number of reports where the transmitter worked fine above water but did not communicate underwater. The users in question did not know that it wouldn't work until they had started their dives. Garmin had to replace these units.
With a bathtub curve and there will be more failures and issues out of the gates than during the normal product life cycle and as such I am not surprised that a couple have failed out of the gates of production. I am near 100 dives in with the mk2i/pod so I think mine is ok. In the seemingly rare event that it did happen to fail in the first 3 to 5 feet of water, I can deal with that fairly quickly.
What I personally see as kind of small issues with the MK2i/pod are things that probably don't matter to many others either, like the Beep/Chirp, only online log (which I feel is just silly), battery indicator for the pod as new, good...ect, lack of compass on any AI screen and a few other small things. Then it does also have some small things that slightly bother me that are not dive related as well like the lack of wireless charging.