During the rainbow the MX believes it has Internet connectivity and is trying to establish communication with the cloud/dashboard. There are a number of tests (DNS lookups, continuous pings, HTTP GETs and ARPing the DFGW) the MX performs, with specific timers, all of which make up the "Connection Monitor". More on that here. https://documentation.meraki.com/MX/Firewall_and_Traffic_Shaping/Connection_Monitoring_for_WAN_Failo...
The failover to cellular backup staying ready instead of going active could be something different and unrelated. I think Support will first want to further examine why it doesn't have consistent connectivity to Dashboard, and once that is solid and consistent then fully test cellular failover.
Keep working with Support, and I'd suggest trying out the local status page, and perhaps keep a continuous ping to 8.8.8.8 or 8.8.4.4 from the laptop on the cable modem running, confirm there are no drops the next time the MX loses its Internet connection, and have the local status page up for additional clues.
Sometimes this odd sporadic behavior comes down to a layer 1 issue, so perhaps also try a different and known good patch cable, and connect it from WAN2 on the MX to a different physical port on the cable modem, just to rule out a bad cable or physical port. I'm assuming it's just a patch cable, but if there are wall jacks and a patch panel in between try alternate jacks, or whatever constitutes a different L1 path between MX and cable modem.