Update:
I think I've narrowed this issue down to the layers of the object. If something is on default layer, I can click on it with this script. If it's in the GUI layer, I can't.
Created a simple cube with the same detection on it ( by name ) and if it's on default layer, it's detecting the raycast, when I switch it to GUI layer, it gets ignored.
So when I try to move this Sprite you suggested I create to the default layer so that it can detect the raycast, I get this warning;
"You can't place widgets on a layer different than the UIPanel that manages them.
If you want to move widgets to a different layer, parent them to a new panel instead."
So I tried creating a new panel, as well as moved this Sprite to different heiarchy underneath the Camera in the UI Root (2d) object, but it's still not letting me change it off the GUI layer.
I'm probably a perfect case subject as to how new users are going to fumble around with this, lol.