Thank you for the quick reply!
Your post got me thinking that the defroster switch I am using might be bad because it should work with the dim ground on Pin 3. That is what has been driving me crazy, it
should work!
I decided to pull my left center console buttons out and test the wiring on a different defroster switch. While I was there, I decided to try bypassing all of the illumination wiring I was running from the cigarette lighter down to the batwing just to see what would happen, same thing, switch is always on. Then I decided to try using the illumination going to Pin 3 of the defroster switch like you suggested, and
it works! Thank you!
After looking in the Bentley Manual, there is something different about the wiring. Unlike everything else that is wired to DIM LED TERM.58d, the defroster switch is wired to DIM LED TERM.31d. Now that I have resolved this, I will tap into the defroster switch and run another wire to power the illumination for this switch.
Also, the indicator light works perfectly with the latching relay!