Ken,
First for the FZRA. Since ProbIcePresent is included for this situation, and the ProbIcePresent value was 40%, then a 60% probability will be assigned to liquid type (in this case FZRA given surface T/Tw well below zero).
Regarding the ProbIcePresent value. The dry air below the saturated dgz layer above 8000 ft is knocking down the ProbIcePresent value. Basically it's saying that you are going to see a good portion of the snow absorbed in that lower level dry air. For this situation I would either not include a ProbIcePresent grid or make it 100%. With the upcoming tech order this month, and part of the next National SmartInit version expected to be released around January 9th/10th, ProbIcePresent will change to 100% for this situation. The new ProbIcePresent targets environments consisting of saturated low levels. If they are not saturated then 100% is assigned to ProbIcePresent. A little more info on the new ProbIcePresent can be found in the past 2 webinars.