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Hello back and sorry for the late reply.
I must admit up front my agent might not be of help, my "bus" was never a school/passenger bus, the "Housecar" conversion was done in 1975, and it was all way before the modern long VIN numbers were standardized. It sounds like Progressive Commercial here in Cali is simply ignoring the title change and the DMV is not going to require them to honor the MH body style.
Funny side note, the "Housecar" designation has its own CVC code while "Motorhome" or "MH" is a sort of industry term that came along later and the DMV adopted it into their own language without really clear terminology. I think Harley-Davidson could release a "Motorhome" edtion bike with dollhouse furnishings and the California DMV would happily take peoples money for title and registration. Insuring it as anything but a motorcycle would be the buyers problem of course.
I will reach out to my agent and ask anyway and report back what I get.