Well I discovered something that the BETA testers for SEIV should have discovered and had fixed in the Last patch.
Ok now that we do not need to have standard classification in our ship sets, (before if you did not have them the random ship display during race set up would error you out) I set up the Monsters to use custom ship names.
When I start to set up the monsters, I get to them on the race selection menu and ERROR. No battleCruiser image.

Oh for the of GOD people! This is one that SHOULD have been cought and changed!
Ok, to get around this, be sure to have at least one battlecruiser portrait image in all your race folders.