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This is somewhat of a long shot but worth considering. Your description matches exactly what happened to my old 90 240 years ago. The high/low beam switch that is incorporated into the high/low beam lever on the steering column went bad on that car. I was lucky. I was able to remove the steering column covers and thoroughly cleaned the switch and wiring with electrical cleaner. Voila! High/low beam function restored! Bear in mind that the solution may not be so easy in your car. It might require a new high/low beam lever or some other part.
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Will I buy another Volvo??? We'll see....
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