Is anybody aware of the ramifications of converting a KSOP to a more traditional 401(k) allowing only the investment of only matching amounts in employer securities?

I might have some advice, but first I have two follow-up questions:

(1) By KSOP, do you mean that employees have the option of investing their own pre-tax salary deferral contributions into the Company's stock? (2) Is the employer's stock publicly-traded or closely-held?

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Yes and the company is publically held.

By KSOP, do you mean that the plan is a combination 401(k)/ESOP?

Is the employer doing anything other than eliminating employer stock as an
investment option for 401(k) money?

A "KSOP" typically refers to a leveraged ESOP where employee pre-tax 401(k) contributions are used to pay down the ESOP debt (together with employer contributions and dividends).

The IRS has blessed KSOPs, the DOL doesn't like them.

The original poster needs to provide us with more info . . .