Cichlid Dad
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My reefing philosophy exactly.Just my opinion, I used to have Setosa but lost it when I turned my reef into brackish water (when I was on vacation).
That is what it looked like just before I lost it:
From my experience Setosa and other montiporas do not like fluctuating PO4 especially sinking PO4. Going from 0.1 to 0.02 is really detrimental, again from my observation. Looking at your picture there may be PO4 instability.
For filtration I only use skimmer and bit of GAC (2 teaspoons on 65gal system changed every 4 weeks). I prefer for the nutrients especially fish poop to stay in the water column as long as possible so corals can feed. Idea being the corals are the main filter and I just supplement.
Using socks, skimmer, refugium etc… can make the water column too clean…
Some pictures of my corals for reference:
Also your salinity is bit elevated and your choice of Seachem Fusion 1/2 may be contributing, it is not balanced system. My suggestion would be to switch to TM AFR at some point, when I used it I had lot of luck with it and in addition to providing Ballance Alk/calcium it also adds trace elements.
Good luck,