FIXED: I actually used the first method the OP used which is to open up the plastic ring covering the hole / holder in the passenger seat. Just used a very slim flat head screw driver. Once it was open (only half of it) I saw the spring-loaded release lever, and was able to push it open. It works just like the one you use to adjust the seat only it is covered up by a plastic ring.
I am sure the FlyinHawaian's method also works but couldn't find anything small and hard enough to slide in. Popping open the plastic cover and pushing the latch open was a 2 minute exercise once I figured it out. THANKS ALL!
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