There is a new firmware available?
End of February version v1.20.12 was released. Mine must have updated automatically.
Im thinking that maybe the ERG mode watts swings I see in Zwift display isn’t a problem. Maybe I am just unused to see it swinging more with the Bike shift than I am used to, vs my Kickr v5 that in Zwift, visually is much more stable around the set power.
Do you have ERG smoothing on or off within the Wahoo App?
I have ERG smoothing ON for both Bike Shift and Kickr v5. Tried with OFF as well, but couldn’t feel/see much difference.
I am going to test ERG with the Wahoo app this evening.
I was watching Ryan Condon YT fitness test video, using his watt bike. I see that his watts also jump alot, very similar to my experience on the Bike Shift. Notice same thing with Shane Miller YT when he tested the Bike Shift.
Must be me who have been too spoiled by my Kickr v5. Unless one have the chance to test both a trainer and a bike, one would never know there is a difference 
Maybe it is a flywheel vs magnetic resistance behaviour. When watching Mark Lewis YT do his ramp test on a Kickr Bike, it looks exacly like my Kickr v5. Close to perfect wattage constanly.
I’m going to accept that it is OK
I cannot find the S4Z mod for Kickr bikes. I cannot find it in S4Z and cannot find any place to download it.
Go on the Sauce discord and there is a channel for it - Its probably also on github as a repository if were to search for it.
Probably easier to just jump on the sauce discord and go to the channel for the Kickrgear mod.
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Had the Kickr Shift also and big issues with ERG mode and gear shifts in free mode. After a replacement shift which had same issues had to get a refund and go back to trusty elite turbo.
ERG mode- you can’t vary your cadence without some easy start technology kicking in which lowers your watts when you drop cadence and then start to increase cadence, which leaves you in perpetual yo-yo effect and not able to maintain the power target.
Free ride gear shifts - shift up one gear while pedalling and you hit a brick wall for a second or two until the technology eases off and you can pedal again… vice versa shifting into an easier gear where you lose resistance.
Played with every virtual chainring and cassette set up to resolve this but no good.
The firmware or product is not up to scratch… not worth a tenth of the cost.
Wonder if the kickr bike v2 is different.