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Easy one first: The high level light is a brake light only. It is wired in to the BFWS relay, so if it blows, the bulb out signal comes on (normal car).
On my 1988 244 there is a connection between the cruise control "brain" and the brake light switch. Don't know if the same goes for your model. Could be, since the connection is what makes the CC drop out when the brake pedal is pushed.
Your symptoms all point to the brake light switch. With the key on, jumpering the switch should make all three brake lights come on. If you do that, and the lights don't come on, it's the BFWS relay, unfortunately.
Good Luck,
Bob
:>)
PS: BFWS = Bulb Failure Warning System
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