The problem turned out to be the default video mode setting for these cameras. If unspecified in the videoinput constructor, these cameras use 'Mono12packed' format as default and this appears to cause problems.
If
vid1 = videoinput('gige',1);
is changed to
vid1 = videoinput('gige',1,'Mono8');
the problem goes away and I am able to take frames from both cameras without a problem.
The system performance is a bit better when using the adapter from FLIR. i.e.
vid1 = videoinput('mwspinnakerimaq',1,'Mono8_Mode0')