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Sounds like your CLU/immobilizer is failing, possibly due to previous water damage (though, with the frost inside, you almost certainly have water intrusion right now).
Start by replacing the ignition switch. They are cheap (less than $20), so just replace it rather than messing with it. If the switch doesn't fix your issues, pull out the CLU, open it and inspect for corrosion or mineral deposits (especially on the connectors and pins).
I'm 95% sure this is going to be a damaged CLU.
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