Not sure how to articulate this question, but how does it determine when it has to transform? You say that it changes in relation to known information to its current manifestation; why didn't it change when they saw it as a teddy bear?
If it affects human long term memory too, shouldn't it be changing literally every time someone remembers that it exists? I do see that there's a distance clause, but people at its current site should know that "there's a teddy bear in that room" or something. Like, you say it can become an animal up to 65 tons; If the people at the site hear an elephant in the locked containment room, it should change, right?
Not sure if i'm just confused or if these actually are pertinent questions. However, i actually do like the concept. Unpredictable chameleon machine.