Don't know if there is any difference between a 95 and 96 but on my 96 I think the led monitors switch position and not door position. I had a led that showed the door closed but in fact the arm was off and the door was not moving but the led would go out or or depending on switch position. Dealer kept telling me all was ok yet I would smell smoke in the car with the recir on and the door supposedly closed. Finally looked myself and fixed the arm. That is how I came to the conclusion that the led reflected the switch position, not the door position.
Easy test. Engine off. Key to position one. Fan on. Swithc to Recirc. Have someone spray air freshener or something near the grille behind the wiper on the right side. If you smell it the door is not closing regardless of the switch position or the led. And vice versa.
Of course all this is the result of my testing on my 96. And as the disclaimer says, "your results may vary".