So finally got this figured out. Originally, I could find no indication or documentation of when the SBY button should be illuminated or extinguished with no other modes active....mostly how do you extinguish the thing at all....so in the interim I tied it to the Flight director..which is of course ON when the other modes are active, which is why the SBY light shows with other modes active (clearly wrong). But the question remained about what powers the thing? i.e. can the SBY light ever be off during normal ops? So it turns out, being part of the SPZ-500 system, it initially illuminates whenever the Radio busses are powered, so its always READY to accept a flight director mode entry. Naturally then, it extinguishes only when the radio busses are powered off or other modes are active. This can be seen in the above video at 8:11 and 8:29, where during rollout, its clearly on (but the AP servos are not)....and when he pulls in to park, its off...but so is the GPS, indicating he flipped off the radio master switches. So during nominal operation, the SBY will always be lit when no other FD mode is active. This will be implemented in the next update patch.
-TK