Hi Andy,
Mapei technical advise that using P.V.A can sometimes have the adverse effect with adhesive and refer the cement-based adhesive back to a liquid state (although cases of this are rarely heard of), a recommended 'Primer G' from most Mapei suppliers. Going by what you've mentioned it could be one of many situations, and so stripping it and starting from scratch will ultimately be the best option. If it was movement within the floorboards itself then most likely the tiles and/or grout will break in correlation to the joints. If not it could be the case of either the adhesive or floor not bonding together sufficiently. Either way my best advice is to lift the tiles and investigate before the situation deteriorates!
The benefit of using powdered grout is that it comes with the additives of flexibility, waterproof and the fight against blackspot and mould.
Hope this helps!