It is perhaps a function of the titanium bikes being made more in real time than the frames built in Hodaka and Fairly.
In the 1998 Kona catalogue, the King Kahuna is the only bike with top tube rm routing, even though all 1998 production was ultimately with TT routing. I assume that means that the decision to change the routing was made just before the point at which the 1998 catalogue photos were taken (presumably in the early months of 1997?) And at that point, the prototypes of the Hodaka/Fairly bikes intended for 1998 had already been built to the previous design, but it was still possible to implement the change in the frames built in the Ti Sports factory.
That would be consistent with the change also being implemented in the 1997 frames still being built by TiSports, but not implemented in any late 97 (i.e., early months of 1997) frames built in Hodaka/Fairly.
In the 1998 Kona catalogue, the King Kahuna is the only bike with top tube rm routing, even though all 1998 production was ultimately with TT routing. I assume that means that the decision to change the routing was made just before the point at which the 1998 catalogue photos were taken (presumably in the early months of 1997?) And at that point, the prototypes of the Hodaka/Fairly bikes intended for 1998 had already been built to the previous design, but it was still possible to implement the change in the frames built in the Ti Sports factory.
That would be consistent with the change also being implemented in the 1997 frames still being built by TiSports, but not implemented in any late 97 (i.e., early months of 1997) frames built in Hodaka/Fairly.