Thanks everyone for the replies. I am using a separate 1073 transformer now to power the ARC. It also is powering some lights and turntable motor. I use a SER2 which is feeding the data lines to the ARC. And a wifi unit before that fed from an LCS cable mentioned in earlier reply that powers those 2 items via wall adapter. All this seems to work as well as an SC-01 and 3 SC-02 modules (those are on wall adapters). The 1073, type V, KW, and two ZW transformers powers the trains and accessories (all phased) and all have U terminals connected together with common ground wire which is also the outside rail of layout tracks.
I do not have any TMCC problems with Legacy and a command base with the ground going to Legacy ground post from U terminal of KW. All of this is working fine (along with a homemade arduino board (that does similar to what the ARC does but has some randomness thrown in the programming).
I was hoping to find some electronics reason for not connecting the ARC U terminal to ground. I'd like to see the schematic but ohmmeter check shows data comm isolated from U terminal so I tried it without problems. Closest thought that makes sense was response that mentioned RF single feed to rail, but that happens anyway with Legacy box post (?). And that the blue boxes have their own supply which is isolated as mentioned in previous response. Anyway the entire setup works and I do not seem to need the wall transformer for the ARC.
I do not use any detector tracks but might in the future. If I do, I pretty much will be back to where I was in the 80s with PC running Microsoft BASIC and some control boards. Not thinking this is progress, just different and I can use phone but never do. :-)
Next up is Block power Controller (using with turntable tracks) that I'll pick up later this week... :-0
Thanks everyone for the responses.