The chuff input normally will show some voltage as there's a pull-up resistor on the R2LC. The stock chuff switch simply grounds that pin to produce the chuff. The C-G attempts to do the same thing, ground that pin to produce the chuff.
What confuses me is the behavior you're seeing, that is more than a little odd. At this point, I'm simply trying to determine if the C-G is working properly, then we can see if we can figure out what is happening elsewhere.