Still looking at my program for your problem I see.

VarsSaved_H is a flag that gets set when ever the Instant Interrupt system saves PBP's System variables in a High Priority interrupt.

With complex programs using both ASM and PBP type handlers, it allows the system to only save and restore the system variables when it needs to.

You are only using a single PBP type interrupt. That bit will always be set on entry to the interrupt handler, And is cleared after the handler has finished. Initializing it to 0 will not do anything.

The only way it could possibly have an affect on your program, is if you have enabled Interrupts that do not have an associated handler.

So anyhow, what are you reading with the I2C statement. (what chip)
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