If you really want to apply the initial conditions to the modal coordinates, you can confirm the application of ICs by looking at the modal displacements.
If you add SDISP(SORT1)=ALL, you get the displacement output at the modal coordinates. If you want to see the velocities, you would use...
The displacement output is the displacement of physical coordinates, not modal coordinates. The initial conditions were defined on the modal coordinates, so I don't expect the displacement in physical coordinates to match.
Per your inquiry, I think you want the initial conditions applied to the...
This is what I would do.
Create 8 outer solids and 8 inner solids of the cylinder. Each solid should be separate and the edges must be aligned. See the attached image.
Mesh the top surfaces with 2D elements as you are doing.
Sweep the mesh through the thickness to build your 3D HEX elements...