The connections look right to me. The orange wire goes at the U connector near center, near speedometer. The yellow + red goes at the lower corner, just as you wrote.

The red and white wire belongs tucked out of the way and not connected unless you have a tach. You probably saw it in there. You didn't mention it.

The flex circuit is actually a fuse, as I understand. I've checked a few of mine for continuity and found continuity. I'd check across those screw terminals for continuity. That little thing is a bit delicate. If busted and parts places don't stock it (I never tried), I'd get one off a junker and leave the rest of the cluster in the yard! Take the bulbs from it too.

Not sure that it's good to disable the Brake Failure light. I'd want to know if mine went out. If it's chronically on for no good reason maybe there's a short in the wire itself, likely near the "octopus" brake distributor block. Front left fender, inner, below the master cylinder. Maybe you were referring to the Bulb Failure light, a common source of irritation - especially if you drive a sedan; the rear lights can be a pain. That's a reasonable candidate for disabling.

Same for the check engine light. I dunno what year your brick is, but if the light goes on it probably has something to say. If it's '89 or later, it has OBD and you can get a readout from the engine compartment that is at least marginally helpful.

You might want to disable the Service Engine light; it comes on every x thousand miles to tell you to get the oil changed.
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Sven: '89 245, IPD sways, electric rad. fan conversion, 28+ mpg - auto tranny. 850 mi/week commute. '89 245 #2 (wifemobile). '90 244 (spare, runs).