Generally the way I have been approaching this is that a UTXO exhibits the properties of a particle in an unspent state and the properties of a wave in a spent state (when it is moving between addresses) we have to remember the time scale between events is enormous when comparing a wave function to Block Time. Please explain how regular bits are qubits?

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A UTXO is always in an unspent state. UTXO’s are instantly created/destroyed as new blocks are mined. Time doesn’t exist for a UTXO. I fail to see how the analogy helps to understand bitcoin. But that’s only my view.