if you are using 4 bit mode for lcd then the DL bit must remain unset in the command
my code assumes 4 bit mode

to get to lcd mode RE bit must be 0

so more like
lcdout $FE, %00100010 'command to turn extended command set off ; might need to swap ext/gph around of maybe they can be done together - not sure
pause 5
lcdout $FE, %00100000 'Command to turn off graphics mode
pause 5
lcdout $FE,1,"123" 'clear screen and display 123 in top left corner in text mode - the numbers 123 *are* displayed in the top left
pause 1000
lcdout $FE,1 'Clear screen for text mode - screen *is* cleared
pause 5

lcdout $FE, %00100100 'command to turn extended command set on ; we know this works
pause 5
lcdout $FE, %00100110 'command to turn graphics mode back on
outcome)