Wrong switch. There are two switches. The starter disable switch has nothing to do with launch control on the evo. I recommend unplugging that one anyway (so you don't have to clutch in to start... obviously it carries a risk, but its also less wear on cold unlubricated parts).

The switch for the 2-step is closer to the top of the pedal and works inversely to this switch. (AKA NC, when your pedal is at rest it is open.)

 

Mine has no 2-step on the 96530006 tephramod rom, but it worked fine on the 94170008 that the ECU came with.

 

Maybe some roms use the clutch switch instead of or in addition to the speed sensor, instead of just the speed sensor?

 

did it ever have a remote start on it? The switch(es) may have been tampered with.

 

no.

 

Check the muffler bearings. If that's good then drain the headlight fluid.

Love you.