Update. Today I talked to offices of my State Assemblyman and Congressman, as well as to the Office of Consumer Affairs Bureau of Auto Repair. All very nice, but the most helpful was the Bureau of Auto Repair.
BAR told me that Sprinters are known to have issues with the smog testing equipment and the on board monitors that need to be "complete."
The guy there also gave me 3 options to try. One of the options actually seems reasonable.
Step 1. Take AI to Mercedes dealer. Dealer can run any tests/diagnostics they need to in order to see if there actually is any problem with our vehicle or with our monitors.
Step 2. If there are problems, Mercedes can fix them under warranty.
Step 3. If there are no problems found, they will write up my invoice to say that all equipment is functioning per manufacturers specifications.
Step 4. I then take that invoice to the Smog Referee, and they should give us a passing grade and then we can complete our vehicle registration.
Any bets on how smoothly this process is going to go?!!