Wow,Thanks. I am obviously new to the battery world. The Olites have rcr123a labeled on them that's why I wrote that good to know. The Olites work fine in the light but the 18650 batteries are what I'm having the problem with. Do they not have the power to run the light or is it over loading the light? It is strange that they have to be drained below 85% SOC to work properly. I am thinking they are low quality cells.
Get rid of the crappy cell and try something of known quality and health. You need to start ruling things out. For all I know, you blew your boost driver when you put in two 3.7v/4.2v in series, but I'm not a flashlight designer, so I can't say. My PD32 works perfectly on 18650s, but that's older light with less current draw.
I'm looking for the driver specs and don't see voltage, but on Turbo, the 850LM PD35 draws 2.88A, so we'll call it 3A. That's safe for most all quality 18650s, from the NCR-A/B Pannies, up to whatever. It's not a problem unless the light is broken, or the cell is bad.
Even the PD35 Tac. is probably only 3.0A on Turbo. Even two RCR123 3.2v rechargeable cells in series, can handle 3A. Two primary CR123A should probably be safe in limited amounts of burst.
Chris