This error was being generated in freeswitch:
[ERR] switch_core_session.c:2683 Invalid Application play tone_stream
Needs to use application "playback" for tone_stream.
Had to use a colon instead of a space as the delimited. Otherwise it would parse the dialpan action as "playback tone_stream" and the data as "//%(274,0,913.8);%(274,0,1370.6);%(380,0,1776.7)"
Now shows --> <action application="playback" data="tone_stream://%(274,0,913.8);%(274,0,1370.6);%(380,0,1776.7)"/>