UPDATE: Solved the safety keybinding issue. Turns out I had set my underwater radio transmit button to the same keybinding. Totally forgot since this had never been an issue and I've only ever used it once during a fun op when I first joined the unit all the way in April. Why it only started acting up now, I have no idea. Either way that issue is solved.
Secondly I did some playing around with the issue regarding micro stances. The keybinding works and will perform the action. The catch is I have to be doing something that prevents me from moving. For example, W + S is how I set myself to walk in game. After hitting both of those keys I stand still for a moment. During that time I can hit my Mouse button and one of the directions and adjust my stances. This however is very impractical. I can also get the stances to work if I were to set adjust stance up to one mouse button and the adjust stance down to the other. I believe it has something to do with attempting an action while moving. Something else I noticed that doesn't seem to work anymore is the combat pace for 3 seconds. This would back up my point about it having to do with being in movement as it is an action specifically used during movement. Worked before, now doesn't.
And to answer your question PFC Ghost, My mouse is a Azza Optical Gaming Mouse. Never had any problems with it. The buttons work for other functions as I've set other actions to use them for testing purposes.
Hope this helps shed some light on things. Thanks again for the help.
P.S. Tried creating a new profile to see if I messed up something somewhere. Nothing.