Scook that is it, it
IS that simple truly. Created a simple instrument track for AD2 dragged-dropped all the midi loop parts to it, bounced it all to clips to get a single clip and then ran Split Note To Tracks. thats it m8!!
Part two, was simply doing a ctrl-c on the midi data, opening a brand new project with no tracks, inserted a midi track crtrl-v paste then split note to track cal again. The ONLY difference is on the new project I did not get the message as advised in the OP.