You are correct, the ESP-01 was still connecting to my Wi-Fi. Looks like reimaging the Ardinu has no impact on the ESP-01 settings. Once connected, the blue LED goes out, just like you said.
I found it connected to my network under an IP address, it seems since I rebuilt the Ardinu, the altair.local is no longer working on my wifi. It was working prior to reimagine the Ardinu.