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Interesting that the light will go on when fuse goes bad. I wouldn't have guessed that without studying a circuit diagram.
That is a tricky one. But that bulb always has +V on one side. When the OD relay is in the "OD selected" state, it's sending +V to the both solenoid and the relay side of the bulb. With +V on both sides of the bulb, no current means no light.
When the relay is toggled for "OD Off"(or the fuse blows, dropping the relay), the outputs to both solenoid and bulb are grounded, so the light comes on.
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Bruce Young '93 940-NA (current) — 240s (one V8) — 140s — 122s — since '63.
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