[Lunatixz]

Removing my message that clearly described how I did not follow directions. I manually set up the xml locations and my channels are now populating...because IPTV Simple knows where to find them.  Will follow up on how the testing goes via an edit to this message.

Edit:
I'm still not able to transition from the end of one episode to starting the next.  I did not receive an error prompt this time.  The static transition shows for a brief moment then playback stops.  

https://paste.kodi.tv/ohufemibob.kodi

The errors indicate an issue with IPTV simple's configuration. When you setup IPTV there is only a handful of settings you need to concern yourself with.
1: Set the paths for M3U/XMLTV/Genre
2: Set M3U to refresh/update, 10mins is recommend. 
3: Set your logo preferences, from m3u is recommend.

Most important after making changes, Navigate to Kodi settings "PVR & LiveTV" and clear guidedata and channel data.

Pushing update to fix the error prompt not working...