Can the starter lockout and reversing lamp switch cause the engine to go into limp mode. I am getting this code with others that seem to come and go. I have read that is is possible for the car to go in limp mode if this switch if bad because the car does not know what gear it is in.

The switch activates the rear brake lights and and will start the car in Park and Neutral, it appears that is working correct but I get the code.

096 Starter lock-out and reversing lamp switch S16/3

Already replaced main wiring harness.

1992 300SE M104 with 722.502

There is a chance that if the engine computer sees park / neutral if could lower the rev limiter making it feel like limp but I don't know these cars well enough.

Will the car start in reverse or drive? ( Make sure the parking brake is applied and foot brake pressed before trying. )

Nope will not start in drive or reverse.....seems no one really knows lots of hypothetical responses in the searches I have been doing.

I just want go get this thing out of limp mode and get it going.

How do you know the car is in limp and how is it acting? ( low RPM ? )

If this car has an electronic throttle body ( linkage and internal motor ) the wires coming out of it have the same bad insulation as the main harness.