You can lower the gearbox on that side a bit. Complete removal is not necessary.
I'm going on memory here but I seem to recall using a 13/16" spark plug socket and short or medium extension.
If you are lucky it will just be a wiring problem. I have found that the new style switch for current models, which works in theory for the older models, doesn't extend into the case far enough to make contact unless I manually hold the shift lever all the way left. This was what I encounterd on my '89. I think if I removed the copper gasket and used some sealant that might be a cure. Or maybe find a thinner gasket or crush ring. Hopefully your switch will be okay or you can find an earlier style replacement.
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'80 DL 2 door, '89 DL Wagon, '15 XC70 T6
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