Dave:
To clarify, in 10.4.1 are you creating the locator with sql db features as the reference data, but the locator is stored in a folder? Or are you using the data and storing the locator in sql db? If you are storing the locator in the sql geodatabase, it is recommended that you store the locator in a file folder.
Which locator style are you using to create the Locator?
-Shana