Looks like the way I had it wired, was that I had a constant 12V going to the solenoid, whether the switch was on or off. The LED worked, but it wasnt indicative of what was really going on, just like you said.
I wired up a normal switch, and there is no lockup. I verified that the switch works, and voltage is being grounded from the tan/blk wire.
I just need to get my converter cover off to see what concverter I have. If its a lockup, thatll spare me the headache of swapping another one out.