Just wanted to report I figured out that in Canvas you have to set the LTI app as "Public" under privacy options so that the students first and last names are passed through to Moodle...then it works and the total course grade syncs back!!!
Then in Canvas, you have to add Moodle as an Assignment as an External Tool and pick the LTI app that you configured!
You can not have students login both manually, or with OAuth2, or with LTI--then you end up with multiple accounts for the same student!
So the trick is to only use the Canvas LTI app Assignment as the method your students will login if you want to successfully integrate Moodle into Canvas....
Hope that helps!