Once the transfer was done, I log in my account and deleted the character that I had made in Ultros to reserve the name, so that it would default to my old character that I just transferred... and it did.
This is where you did it wrong.
You should have deleted the reserved character just before the transfer,not after.
Like said above,you flagged yourself with a same name character and even if you delete the second one after the transfer,the transfer script had already flagged you're good character for a rename since it saw the other one before you deleted it.