It got worse before it got better.

I found that not only had the little buggers (actually identified as Odorous House Ants -
Tapinoma sessile) had not only attacked the Poly -iso but had burrowed into some expanded poly styrene (the white stuff) Funny thing is the white stuff, called R-Tech and manufactured by INSULFOAM (
www.insulfoam.com) is labeled as Insect Resistant" at least to Termites and Carpenter Ants. I guess my ants couldn't read the labels.
I agree that the foil facing may be a deterrent but, in this case, the edges were exposed and they entered that way leaving the foil completely intact. Perhaps wrapping the cut edges with foil tape might work.
In the end, I had to pull it all out of the soffits as well as some sandwiched between 2x window and door headers in a 2x6 wall.

I then had an exterminator come in and spray everything and gas the attic. For the next week there were dead ants everywhere

I don't think I am exaggerating when I say I swept up thousands of them everywhere inside and out. So far no more sightings and I am putting things back together but not using ANY foam insulation strictly fiberglass.