Can an extension be assigned as the operator? This is a hospitality application and the rooms dial 0 when it is night service and it rings the console. I need it to ring to an extension.

If you enable System Option 156 (Flexible Night Service) ad your Attendant Function Code is * then do this:
To assign Flexible Night Service (Dial 0 Assignment):
Dial *30.
Press NIGHT 1 or NIGHT 2 button.
Dial the extension number or dial: #0, #‘l, #2 for night bell or dial the master Hunt Group number.
Dial # to enter.
Press the RELEASE button.
To delete an assignment:
Dial *30.
Press NIGHT 1 or NIGHT 2 button.
Dial ##.
Press the RELEASE button.

OK I enabled system option 156 and the attendant access code is *. When I press the release button the error light comes on. I tried several different extensions with different class of service and nothing helps. What else would affect this? Is there a conflict with another feature?

In the console manual it does not have the step where you press # after the extension number just press the release button.
Try that and see what happens. Does not have any conflicts noted.