Update:
While trying a random thing or two, I seem to have "fixed" the problem, although it makes little sense to me. Here's what I found:
1. If I imported (in hopes of overwriting) the metadata for the feature class from a duplicate copy in our production SDE database (I'm working in our development SDE), purposely using the wrong translator/import type (FROM_ISO_19139 instead of FGDC), I could get the FC to "think" it was an ISO format - although, it no longer displayed the Summary and Description info.
2. I then ran the Upgrade Metadata tool again, this time using the [ESRIISO_TO_ARCGIS] Upgrade Type. The upgrade completed successfully, albeit w/o the aforementioned information.
3. I DELETED the upgraded feature class from my Dev database, then replaced it by copy/pasting from my (non-upgraded) Prod source.
4. Oddly, even though the feature class was completely removed from the database, the pasted replacement (with its full metadata intact, of course) is still regarded by ArcCatalog as having been upgraded.
I'm happy. ArcCatalog is happy (I think). And no hand reached out from the metadata toolbar to slap me.
Again, if anyone has any ideas why ArcCatalog might have had problems translating the original metadata in the first place, or why this convoluted work around works, please let me know.
Thx.
Gavin