Do dealers know what to do to fix this? All correct bulbs and everything working correctly. Anyone else? 97 e420 S. Thanks

The dealer can fix this. There has been a few of the diplays that are going bad I've heard.

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Benzmac:
ASE CERTIFIED MASTER AUTO TECHNICIAN
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Check the bulb socket contact points at the rear tailight housings for the possibility of pitted/burn marks (slight). Make sure the dealer checks that the latest tailight housings are installed. If they are not aware of the modification, tell them to research the condition.

There is a S.I. on this topic, the wiring to the inner front lights must be replaced.