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That's just an indicator that the switch is in "Auto" position.
It's stupid, but Volvo doesn't differentiate between the lights actually being "ON" and the indicator showing.
 

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Daytime running lights will always be on in Auto regardless of sunshine.
 

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Daytime running lights will always be on in Auto regardless of sunshine.
I'm pretty sure the rear lights are also on as well. At least they used to be on P3 models. I never get to see the rear of my car when it's on though.

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