Tom Cherry

Scroll back and find the HOW TO ADJUST FILE.  It is very clear and informative.  There is one step that is critical.
There are TWO TYPES OF DOORS. 
One with a Bushing that MAY/MIGHT wear.  The condition or replacement of the bushing must be addressed FIRST.  THEN follow the adjustment instructions.
The OTHER one...NO BUSHING.  Skip the bushing comments and proceed.  
Many have done this.  If an RV Tech has never done this....he needs to have the file.  It is NOT difficult and most Techs have done it....some by "On the Job Learning" and others from the File.  Many folks that are handy with tools and can follow the instructions have done it quite successfully. 

Amazon is my source for the VHB 3M.  If you pull the specs, the clear is stronger than the black “auto decal” variety.  I use WD40 to soften up old double stick take and remove it….let it soak a little.  Then I use a plastic scraper for the trouble spots.  Wash both mating surfaces and rinse and let dry.  NOW….very careful and cautious, I will take a slightly damp rag with acetone and then finish up.  That removes all the residue.  3M makes a clear primer that detail shops and pin striping folks use.  It is a flash solvent that actually gives the paint a little “tackiness”.  Again…Acetone is powerful, so don’t pour it on.  Rubbing alcohol might work.  The reason is that any or the slightest residue from the old tape, on either surface will impact the strength of the bond.  I have used this technique on partD and gaskets and many different kinds of bonds with great results.
Amazon has the clear in different widths and lengths,

The switches are absolutely PLAIN VANILLA.  They are Single Pole Double Throw Momentary Contact Center Off.  (SPDT MC Center OFF).  Sigma or Carling was the vendor.  They are STANDARD "Pop or Snap" in switches.  They are LOW current draw as there is a Controller board for the Rear and the Lippert Hydraulic Control system is up front.  You do NOT need any heavy duty switches....milliamps of current.  Go to either vendor and look at the catalog. 
You can also download the Parts List and look on page 161.  That has some info on the two vendors.  I can't remember the details, but one of them will take orders but the other will use a distributor.  
The MAIN THING...  What is the size of the cutout or rectangular slot for the switch.  Then match that up with the series that snaps into them.  You want BLACK and a SPDT MC Center OFF switch.  You can probably find them on any electrical supply house online.  I would BUY either the Carling or Sigma as they are know quality.
All you have to do is slip a knife or something under the lip or edge of the switch.  Then push down or put pressure on that raised edge towards the opposite side and lift up.  Then do the other side.  Take a picture of EACH switch as it is "dangling out".  Note which colored wire (it supposedly color coded) is on top and then the middle and bottom.  Use a piece or masking tape and label. BDR Top, Mid and Bot.  Same for FRT.  
here is the print on one of them.  The switch is the same for both front and rear....
I use WD40, SPARINGLY, to lubricate a sticky or balky switch with plastic in it.  THEN, I sparingly hit it with a shot of "Electronic" (NOT ELECTRICAL) Contact cleaner.  The WD40 lubes the switch.  YES, it has a smidge of Kerosene in it....but then that gets flushed out with the Electronic contact cleaner.  Sometimes a simple shot of Contact cleaner will work.
Turn ON the ignition....don't need to start the engine.  That locks out the control voltage.  You can spray and cycle the switches all you want.  
Good Luck.
Bedroom sllideouts.pdf

First.  Judging a switch from how it turns on or off, unless you have intermittent electrical issues may not be a valid test. 
 
Second. A shot of contact cleaner never hurts.  If you want to do the proper, IMO, preventative maintenance. Do this
Use a VOM and measure the voltage ACROSS the cables.  Or, you can, assuming you have a good ground, measure the voltage on each to ground.  Direct measurement across the switches two terminals or on the cable terminals is the mast accurate as grounding one side can lead to variability.  ZERO volts is good….as it should be.  There are many “rules” of thump, but if you get close to a tenth or 0.1 VDC….you have resistance.  Most say LESS THAN 0.05 VDC.
Now, my old “fix” where you might have some internal galling on the shaft.  Disconnect the battery. Hit the switch with a short, very short shot of WD-40 from the “straw” nozzle aimed at where the switch shaft is.  NOT SILICONE. Then cycle it a few times The WD-40 is a kerosene based lube that displaces any water (NASA invention…Water Displacement).  Some will then use ELECTRONIC, not electrical, cleaner….really short blast to remove any residual or non volatile WD-40.
DO that….then  cycle….then hook up battery.  Measure the voltage drop.  If less than 0.05….good to go.
I am biased for the Blue Seas.  The one recommended is the stock one on my Camelot.  The picture caption is WRONG.  Price is correct.  You do NOT have an AFD style switch….just a plain vanilla ON/OFF.  Now remember,  300 A Is a heck of a load.  The Salesman solenoid is only rated at 80 A. You only put 100 A back into the battery charging from the inverter and that drops off drastically.  The 300 A Chassis Battery switch does NOT switch off the chassis battery to the starter. That is directly cabled.  The Chassis switch turns off the other loads, save power to the ECM & TCM and some other low draw items.
EDIT….Frank, in a later post, brings up an issue.  The Dynasty and above have a DIFFERENT switch.  The Blue Sea 9003E is the most common for us lower end MH.  If your old switch is in the Dynasty or above, it will have two smaller wires.  That is an AFD style. The Blue Seas switch for that replacement would the AFD version….the 9004E.  It has the two additional terminals.
I would NOT just “connect the two sensing wires”….I would purchase the right version….plain if only two posts….not small wires or AFD if the OEM switch has the sensing circuit.
Monaco was inconsistent in how they hooked up the inverter.  Mine goes through a 300 A fuse and not the House switch.  Some DID, I believe, go through the House  Switch.  Look at yours on the prints.
Investigate and verify.  If the switch is bad, replace….and you have 2 choices.  Don’t judge it by feel unless you need pliers to turn or have downstream issues.

WOW.  bummer.  I, too, did a little digging.  I could not find anything on the internet. The step you have, MEMORY, if it is a double step, was recalled.
https://lci-support-doc.s3.amazonaws.com/recall/ccd_0002553.pdf
However, the date of 5/25/07 would have put the recalled units, more than likely, on the 08 units....just based on logistics.  SOME could have been on the 07's...
If Lippert doesn't have the parts, then I have no other ideas....other than to find a machine shop and have some made from metal and go from there.  All the 3D printing might work....but if this is not a high demand item, then those individuals would probably not be involved.  Pity Lippert does not provide the information on them.
I did find the "Lippert Steps" parts page.  and there are 91 items....but no support pieces nor included in the various sub assemblies.
My question....did you go into Lippert  PARTS within the Lippert System or did you go to Customer/Tech Support.  I have found the parts folks know a LOT more.  For whatever reason....and this is in the Hydraulic Slide domain, Lippert's OEM numbers....that they sold to Monaco....and put on the build sheets are NOT in the Tech Support data base.  Get the Lippert PN from the step or your build sheet.  Then go into Lippert Parts on the voice prompts.  I finally was transferred from Slide Tech Support to Parts as the individual could NOT find my unit....since he only had the Aftermarket PN.  Crazy....YES.  But it was what the Parts Rep told me. The parts folks were quick to tell me exactly what I needed and VERY WELL INFORMED.
Good Luck....
 

Start with the basics.  Pulled your manual.  Do you have ANY electrical prints in the back....they are NEVER in the online manual.  If SO....you need to find the LP circuit...
If you are NOT familiar with circuitry....then this is a narrative.  The Switch has to have INCOMING power.  One side of the switch has a "fused" 12 VDC line and the other side is the output.  Turn the switch ON....you have power.  Since you have an indicator light next to it, that light is in PARALLEL with the switch.  SO, when you turn ON the switch....power goes to the LIGHT as well as to the Solenoid.  BTW, if you have the Electric Genny Shut off solenoid....an option shown in your manual, then BOTH solenoids will get power.
It is not clear WHAT you did when you "Reversed" the wires.  I would NOT have suspected that would have blown a fuse....but it did....WHY....??  BUT, i can tell you that when you connected or bypassed, you sent positive power to GROUND.  FUSE BLEW.  That is the Quandary.  Without having someone with electrical knowledge and a VOM, I can't do more more.  BUT, for your information....and in the future.
On the switch, there will be a wire that brings power IN.  There will be a wire(s) that goes to the LIGHT as well as the ONE line or side of the solenoid(s).  There are TWO LINES going to the solenoid....POSITIVE and NEGATIVE.  It probably DOES NOT matter which side of the Solenoid Coil. Those same lines are connected to the indicator lamp.  Switch ON....you light the light and power the solenoid.  Find the INCOMING line to the switch.  If you can test power then do it.  Otherwise, you may be in over your head.
You need some electrical skills and some circuitry knowledge to go from here.  Basically, you shorted out a POSITIVE line to GROUND....can't way WHY that happened when you reversed... BUT definitely shorted it out when you CONNECTED them or tried to bypass the light.  POWER is gone to the switch.  You have TWO issues.
First....you need to restore the power....find the fuse.....or have someone do that.  IF the fuse is so elusive....as in there are NOT any prints in the back of your manual, then a new line, fused with a 3 - 5 Amp inline fuse will be needed.  
THEN...A new 12 VDC indicator light....it does NOT have to be an incandescent it can be neon or LED.  Here is a link to one  Your SEARCH would be PUSH IN 12 VDC indicator or maybe "Pilot" light.  This one screws in....I do NOT know HOW the switch panel is made and how to get to the back of it.  BUT, any common 12 VDC pilot light will work...
https://www.amazon.com/Alpinetech-PLB12M-Metal-Signal-Indicator/dp/B071DPHNT2?th=1
If I understand the schematic in the manual.  You have PRIMARY shut off valve....but it has a Solenoid on it.  So, the ONLY way to get Propane into the MH (and maybe to the Genny if you have the OPTIONAL one) is to power the solenoid....WITH the primary valve(s) opened.  The circuit or a new one has to provide POWER to the Solenoid....
FWIW....This is an "UNUSAL" system.....and it is NOT used, to the best of my knowledge on later models.  I have a simple tank with a shut off valve that goes into the regulator....and that is is.  It might be costly to have the tank replumbed to eliminate the solenoids.....I ASSUME that the solenoids are replaceable....but this is just an assumption.
Therefore, you are going to have to fix the control circuit. NOW...if that is beyond your skill set....then find a tech.  That Tech should understand BOTH the Electrical and the Propane systems.  
Quite SIMPLY.....if you cannot get to the back or the "inside" of the switch area....then you can ADD a manual switch on a bracket beside it.  All it needs is an INCOMING (Fused of course) power and a switch and an indicator lamp.  The circuit is NOT that complex....but how or what Monaco used is the issue.  MAYBE an LP supplier that does service work can do that or an RV tech.
Wish I could help more, but if you do not understand how the circuit works, then I am reluctant to tell you HOW to fix it....but from a Narrative point of VIEW....I can offer the above.
ONE FINAL COMMENT.  IF you locate the incoming wire and the FUSE.....removed the light.....tape OFF the ends of the leads....that way, the switch will NOT go to ground.  Then use it until you can get a competent tech to replace the indicator lamp....with an appropriate 12 VDC one.  
Good Luck.  OTHER Neptune or similar MH with the Solenoid on the main shutoff might chime in here....
 
 

OK....first things FIRST.  You need a print for your MH.  MAYBE you have them in the back of your Owner's Manual.  Supposedly, the Knight and the Ambassador are twin sister coaches.
The above file is a GEM.....there are individual PDF's for everything.  OK....If you look on the attached print....and I think you have already done this....then try this.  Get a THREE pin 115 Vac plug.  Attach a Wire to the GROUND PIN.  Leave the other two ALONE.  This is a great ground or source for testing.  The RED wire on the and rear switches are the POWER in.  The whites (look on the print....for the pin number) are the GROUNDS.  If you test each switch Red to Ground....and get your 12 - 13 VDC, then you know that is OK....but do it on each switch.  NOW....you have bypassed the back switch.  That REALLY doesn't matter.  What the switch did was "get toasty".  If you temporarily short of jumper the RED and the OTHER terminal (can't tell the color....then turn ON or put the front switch in the position of ON your lights are on....but probably DIM.  Now....TURN off the front switch.  if you REALLY want to do it first class, then make up a spade jumper for each switch and then straight wire each switch.  That takes the contacts on each switch out of the circuit.  NOW do you voltage measurement.  If you still have low voltage....then do this....
Pull the jumper from each end.  Use your VOM and do a continuity test from the ground (on the fixture) to the GREEN wire on the 115 VAC plug.  Any convenient outlet.  The 115 VAC GROUND and the Battery(S) GROUNDS are ALL on the Chassis.   Now that you know which wire is GROUND....then run a jumper to that connection from the 115 VAC ground.....THEN jumper back in each switch.  You SHOULD have 12 VDC there.  IF NOT....you know you are looking for a high resistance connection in the 12 VDC side....or POSITIVE.  If you have good power....then you have a bad ground in the system.  
That is the easy part.  It appears to be a problem on ONE end or the other.  The ONLY way to chase it is to start at one end.  Do a voltage test at the FIRST fixture.....then keep working.  I also included the BLOCK or the schematic for the Lights.....that tells you WHERE the wires are running.  It is NOT unusual for Monaco's Butt Splices to be bad. 
I would also, assuming you have snap or slide switches on each fixture (mine do...yours might not), turn OFF every light fixture....with the two switches jumpered....then start turning on and then OFF....each one.  You may find where the issue is.  If you drop the fixture, you can probably find the bad connection.  Try TUGGING firmly on the connecting wire (from the circuit) to the Butt Splice going to the fixture.  ODDS are....one is LOOSE...
Good Luck
 
2006KNIGHT-1413907209_PANELENTRANCESWITCH(06-07)166241422.pdf Block Layout - Lighting 2006 Knight 1135419658_12VLIGHTING41SKQ(08)38090795.pdf