A corroded ground or power connector is the most likely problem but check the door switch also. It's a magnetic switch and works the same as a burglar alarm switch. The contacts are mounted on the door frame and a magnetic on the door. The magnetic could have been loose or out of alignment with the contact side of the switch.
The ignition switch re-track is an override to ensure you don't drive off with the steps out, but it only works once per engine cycle. Open the door after starting the engine with the stay out override on and the steps many not re-track. They have a way of being removed, forcefully, at the first right turn if extended.
