you do have shore power un plugged
while testing for generator power... yes
the interlock will prevent transfer
if you are testing correctly, then the answer is the little control board in the transfer switch is bad
or the relay coil for that side of the circuit switch is burned out
either way.. its time for a new transfer switch
I can explain it to you.
But I Can Not understand it for you !
....
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1997 F53 Bounder 36s