Alright I did some digging and found out it has to do with Emergency Contact Group on the G2. It also mentions something about disabling 2-step authentication but I can't seem to find this option?
EDIT: So I found out 2-step Authentication has to happen via a computer. I never had it set up, so I set it up and now my contacts are syncing. Supposedly this is google's new way to help keep people's stuff safe

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