When connected to a running X20CP3686x, it says it's offline

Hi,

Yes, you’re right. Internal and CF flash are two separated memories, there’s no interaction between them. You can choose which memory to use by the mode switch, but only exclusive usage is possible (you can’t use both at the same time).

This should possible by preparing a USB Stick with the suitable project using AS (please see here, scenario 2c), plug the stick into the PLC and switch the PLC to BOOT mode by using the Boot/Reset button (please see here in the help, and some more information in the solution of this thread).

Another option could be switching the PLC to BOOT mode and do an installation online - please see this thread for a perfect description how to do it:

Hope that helps a bit.
Best regards!