I double checked Rls 3 Install guide and see no mention of musice On Trnsfer."
There is none.
I see how I was misleading. With a transfer, there are two presses of the transfer button to complete the transfer process (dialing in between the two key presses), and between those two key presses the first call is actually put on hold. The caller will hear hold music.
Of course, if you "cold transfer", by pressing the transfer key immediately after dialing the number, then the caller will hear the other extension ringing.
So, that's what I was referring to, and that's what I tested earlier. However, I did not test when the call is being transferred from the AA. I now understand that the caller won't hear hold music in this case because the call is not held for any length during the transfer. As Deweyhumbolt says, "you'll hear a second or so of MOH, but you hear ringback while the call is ringing at the transferred DN".
No, I'm not aware of any new feature in R3 for changing this.
Sorry for any confusion.
Anyway, I don't know any way to solve the problem other than getting ICC licenced on the BCM.