Notice, and fair enough it's hard to see in the picture, the black wire going to the switch controller.
Fastrack switches change direction when the Thru or Out are shorted to Common.
Per the diagram, when connecting Aux power into the switch, they inadvertently appear to have not shown the all important black common wire of the switch controller connected. If that was the case (common was open circuit) then yes, the switch controller would not work. That black wire of of the switch controller needs connected to Common (Power COM).
The fact you have the lantern lit indicates the switch logic is powered.
Again, you should be able to test by taking a short wire while the switch is powered and touching the Thru or Out terminal to the Common (Power COM) terminal.
