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My solution attached.
What I actually end up doing is change the output type to .csv but keep the .json file extension and change settings to /0 delimiter which means no delimiter, file does not contain headers in first row, and never quote output fields, so this basically just writes our JSON text string into a text file with a .json file extension. When you read the data in as a JSON type with the input tool there are no issues with reading the data in which means that it works.
Changed the output and looks good now!
