There is a newspaper article from November 1993 that mentioned the format being more experimental and trying to target UNM students that the translator did not cover very well. Here is the link but I don't think it can be read without a subscription:
Albuquerque Journal from Albuquerque, New Mexico The Duncan reports on the history website had it averaging between a 1.5-2.0 in 1991-92 but slipped some in 1993. Apparently that format was axed in March 1994 switching to some satellite AC format or something, it probably didn't last long.
I don't remember that, but it's certainly possible. The Journal was obviously there, and I was in college in Arkansas at the time. So, I'd say it's probably true. From what I can tell, it did seem to have some upheaval in 1994. The 1994-95 M Street Directory lists KBAC as silent, and it was current to at least August 1994. The 1996 M Street Directory, which was current at least to June of that year, also lists KBAC as silent. It shows as running a AAA format again in the 1998 edition. M Street's not perfect, but I trust its accuracy.
KIOT was also originally a AAA format so it became a competitor at 95.9 but after the 102.5 signal signed on it averaged in the mid 2s and broke into the 3s a couple times before it flipped to classic rock using the "Arrow" name in late 1995.
Coyote Radio "Music Without Borders" ran a unique AAA format that was mostly Santa Fe but did have a translator in Albuquerque and bought the 102.5 signal out of Los Lunas. I believe that's correct that it had the translator at 95.9, and it worked really skillfully to get 102.5 onto Sandia. The 102.3 out of Espanola, where the Coyote originally was, moved to 92.9 to accommodate that change. After all that effort to upgrade 102.5, it was quickly sold and became "The Arrow."
It's possible that flip prompted KBAC to return to a AAA format in about early 1996. There was also a semi-AAA launched on 103.3 in 2001 that promoted itself as "quality rock, true variety" that seemed to do pretty well playing a lot of 80s era new wave and post-punk music into any alternative currents that were not too hard-edged. It did knock KPEK down quite a lot in the ratings and that could possibly have been the motivation to move KBAC to 104.1 which would seem like an unconventional move by Clear Channel (iHeart). 103.3 shifted the format to alternative around the time KOB-FM went CHR but after it became KDRF the AAA format on 104.1 was dropped about a month later. So maybe it was "mission accomplished" to them.
I remember 103.3 became KTZO "The Zone" at some point after Citadel bought it. It had more of a modern rock format like The Edge toward the end of its run. Seems like Citadel first switched KASY to KTBL K-Bull 103.3, which aired a classic leaning country format, before it became The Zone. Either Citadel or Crescent switched KOLT 106 to classic country KRZY-FM, but Citadel spun 105.9 off after acquiring either KASY or KHFM. So, it got rid of the current based "Cat Country 103.3" for classic country K-Bull. I remember having a conversation with Paul Bailey around 2002, but I can't remember if he was still at K-Bull or if he had moved to KRST by then. KBAC did move to 104.1 after the classic rock format got shunted to 98.1, but 104.1 switched to World Class Rock to target Albuquerque while moving Radio Free Santa Fe back to 98.1 after a year or so. KLSK had issues competing with The Arrow, which likely contributed to the format swap with 98.1.
AAA appears to be one of the formats that splintered from the Album Oriented Rock format along with classic rock, alternative, and active rock in the 1990s. It doesn't seem to have a clear definition aside from being the only format where modern indie bands can have hits although alternative might occasionally try to play them but they don't often fit in alongside the 20-30 year old Green Day, Blink 182, Linkin Park, or Foo Fighters songs that now define that format.
AAA came from the freeform FM rock formats. Those that tried to remain freeform typically became recognized as AAA, but most became AAA. You're correct that it doesn't have a clear definition, though R&R had a AAA reporting section.
That episode is set in 2003 when KDSK did not have a signal in Albuquerque. Maybe the producers overlooked it or Mike had a super strong receiver (wasn't he building a device of some sort?).
Given how signals travel there, it wouldn't be too surprising to pick up KDSK 92.7 occasionally, especially on a good car radio or home stereo.