I took the mower over to the very nice folks at Southwest Fertilizer who are a Toro dealer. After I showed them that the mower wouldn't coast more than 2 feet, they pushed it into the shop with the back wheels off the ground. A couple of the mechanics took a look at it and said that it's just the way it's designed.
Very strange but I'm just gonna go ahead and keep it.
You all have a Merry Christmas.