Vara-FM works just fine with my gateway. After some reflection it is not likely that anyone would use VarAc-FM at 2M frequencies. Most can't reach fare enough on 2m to make it practical for VarAC. Just use Winlink P-to-P for local messaging. Thanks to everyones comments.

The IC-9700 PTT is assigned Com 4. Vara-FM PTT wants to use the same Com 4. It seems that both programs can not use the same port. When testing PTT on Vara-FM it works. Then if I try to send a beacon on VarAC it will not engage the IC-9700 PTT.