I've never run into a scenario like what you are describing, but I really can't see how it would be possible for an AC delco module not to work on a duralast distributor. Think about it. The pick up coil reads the reluctor wheel which sends a signal to the module. The module then fires the coil. That's a little over simplified, but I'd be looking for a problem with one of the connection to the module. Is there any chance one of the terminal slipped past the connector, or maybe the connector isn't holding tight on the terminal. Maybe you just got a new defect module.
Think of it from a manufacturing stand point. ALL the aftermarket modules, Standard, MSD, Accel, ect. All work with the original AC Delco / Delco Remy Distributors, if Duralast built a distributor that only a duralast module worked on there would be a lot of upset customers when they replaced there modules.
My vote it is not a compatibility issues and there is another problem. If you end up replacing the entire distributor an AC Delco would be great of course but they can be hard if not impossible to get. We have had good luck with Spectra distributors at the shop, they are manufactured by WIA. The only issue we have had is the suppressor isn't the best so we usually swap over the original unit.