Key is not snapping back after cranking?

Sure, the problem is the ignition switch (electrical part), here are instructions on how to change it out in the images below. If you have changed this part already, can you remove the switch and work it manually to make sure the return spring inside the switch is working? If so, check the control shaft between the lock and the switch; everything must work smoothly. Check out the images (below). Please let us know if you need anything else to get the problem fixed.

So, when I unplug the electrical connection from the ignition switch the key snaps back perfectly but when the switch has power the key stays forward in the cranking position. I also pulled the starter solenoid fuse and the key functions as it should.

Lol, I love this job, always something new. Did it act this way with the old switch? It sounds like the OTIS diode is not working. It is located in the fuse panel under the hood, left rear. Here is the starter wiring diagrams so you can see how the system works. Here is the location of the diode. Please let me know.

Haha, thank you Ken! These diagrams are exactly what I needed. Hopefully a new OTIS fuse will do the trip. I will keep you posted and thanks again.

Do you have a power distribution wiring diagram you can send me? The fuse box on the passenger side kick panel. Is that DIODE fuse you circled for diesels?

I've done everything I can think of to fix this issue. My next step is towing it to a diesel mechanic in defeat.

Did you find the Diode? Here are the wiring diagrams for the ignition switch. The fuse panel is the same for the diesel engine truck. Let me know, this is a good one!

Awesome! I had no idea they were the same. This should help me identify the issue. I will let you know what the problem was and how it got resolved. Thanks Ken.

You are welcome, I have never heard of this problem before in the 40 years of doing this, lol.