Good news I got everything posted to DL as of 1/2.

BOS-AMS segment posted on 1/1
AMS-FCO segment status change to F (credited to FB) on 1/2
Called Delta Medallion line again on 1/2 Delta resubmitted the Mileage request and they showed up with 30 minutes after the call.

KLM and Flying Blue basically had no intention to correct the issue but Delta came to rescue. I probably talked to 5/6 different Delta CSRs that they have been assuring that they saw tickets were tied to SkyMiles numbers, not FB numbers so I would get the miles to DL. At the end, it did happen as Delta promised.

Hope my data point helps someone dealing with the same issue.

Happy New Year.