So I was under the impression that with less than 5 players (3 or 4) in a game, each player can PICK 2 strategy cards but only take ONE strategy action per turn. Is this correct?

If so, can someone explain this Q and A from the Errata?

Q: When using the “Tech Bubble” Action Card in a 3- or
4-player game, if I have both the Initiative Strategy Card and
the Technology Strategy Card, do I have to pay a Command
Counter to execute the secondary ability of the Technology
Strategy?
A: Yes. The cost comes from playing the card, not from nor-
mal use of the secondary ability.

On the Initiative strategy card it states that you cannot take a strategy action this turn, so shouldn't you not be able to use technology if that's the case?

But, if you're only allowed one strategy action to begin with, can you choose tech and ignore initiative? Or, is the initiative a passive card that just lets you use secondary abilities for free? If that's the case though, I defer back to my former question about not being able to use technology if you have initiative.

Am I wrong about only being able to use one strategy card out of two that you select?

Actually look at the rules online here, page 31. It clearly states on page 31 that each player must take two separate Strategic Actions during the Action Phase (one for each card) , so not only can you play both strategy cards, you must play them.

However reading the Initiative Card ISTM that the 'Do not take a strategic Action' part applies more to a larger game where that is your only SC. All the effects are passive. You get the Speaker's Token, but that happens when you pick the card in the Strategy Phase. You don't have to pay CC to execute secondary strategies of other player's SCs, but that happens when they play them. But there is no real action to 'playing' the Initiate SC, AFAICT. However the rules are you can't pass till you played your SC(s), so that last line ISTM is more a special exemption to the 'play all SCs before going to the Status Phase'.

The - do not take a Strategic Action this turn - refers only to the Initiative card itself. you will have 2 cards and will have to use the other one as the Initiative card does not have an activation.