Hey Colin, first off, no, that's not normal, but we're not judging ;)
You are correct with the RFID thinking, each ring has its own microchip to track the cycles used. Each time you load a new grinding ring into the machine, you'll notice a bit of a pause when the ring goes back to its "home" position on the right while it's being read. After a few seconds, the life indicator bar will show that ring's life.
As for the new steel, in the manual under Operation > Sharpening New Steel we detail a marker test for determining the amount of passes to run. On average we've found 10 to be the number, hence the 10 cycle button, but it will always vary a bit. The steel is stamped in a way in which there is not much control on how level that bottom surface is. Sometimes we see brand new blades that are dead on, then other times they can be 5 to 6 thou off. So, give that marker test a try and you'll know, when the marker is gone you're ready to go.
On another note, same is true for sharpening with Sparx for the first time. We cannot control your last manual sharpening, which means if your edges were uneven, you may need to run more than 4 cycles to get them back to even. You can use the marker test here as well. I'd say on average when we're demoing in the field, 5/6 cycles is the general "get back to even" number. But once you're in the Sparx "ecosystem", 4 is the number that works since we're not repairing uneven edges anymore.
We're always peeking around the threads, so feel free to ask away if you have any other questions.
Thanks,
Steve