Sounds like you have high resistance on the 12V wire and meters draw almost no amps and will incorrectly indicate voltage when none exists with a load. Measure the 12V on the yellow wire with a load, sometimes a 12V auto test light is enough.
It sounds like you are describing a bad switch?
2009 Holiday Rambler 42' Scepter with ISL 400 Cummins
750 Watts Solar Morningstar MPPT 60 Controller
2014 Grand Cherokee Overland
Bob