Apple released a new version of ios6.
The phone had ios6.0.2
Updated to ios6.1
No more data leakage AT ALL!!
Tip: You may need to reset phone back to factory setting not once BUT TWICE.
Resetting it one time reset it back to 6.0.2 and then wanted to upgrade to 6.1 - kept leaking data.
Resetting it second time. First I updated from 6.0.2 to 6.1. THEN I reset it.
It turns out resetting so that it had a clean install of 6.1. instead of a patched 6.0.2 to 6.1 made the difference.