For one thing you should only launch VarAC. Let it find and open the VARA (HF) modem. There is a configuration item where you are to enter the path to VARA.

An identical thing happens with the IC-7300. there are two similar .xml files. The one with DATA in the name will switch the rig into the data mode for digital operations. The other one just uses USB and thus uses FSK or RTTY. In the absence of a DATA version, just modify the FT891 file by hand using Notepad to insert the necessary data mode command. The command is probably listed in your manual.

Reading the 7300 manual (full edition) gives all the commands the rig is capable of doing. Pick the things you want to do and add them to the .xml file (DATA version of course) someplace. There is an 'Initialize' section, but I don't see an 'exit' section.

open up the XML file for the IC 7300 DATA you will see that the DATA version uses data mode (like it should) instead of RTTY. I changed all my addresses from 94 to 88 also.