I have yet to have a reaction from cocobolo, and with ocarinas you literally have the wood in your mouth, drool into it, and suck it back into your mouth.
Perhaps it is a different cultivar or variety or subspecies that is causing the problems reported. I only know that which I have tried; Hind Ocarinas and KDJ Flutes both make instruments with Cocobolo that appear by all reports to be non-toxic. The custom fife I had made of cocobolo by Fontana Studios does appear to be different at least to some extent, it smells and feels different, but so far no reaction at all. I will keep my eye out though.