I pulled out the radio, center console, and the seat so I could try to see what was going on with the fan switch. I couldn't see anything but decided to try and pull off the connections and test them before taking off the dash pad and replacing the fan switch.
Luckily I could reach up and was able to pull them off. After getting them off I went to the engine compartment and checked to see if there was continuity between the LG wire and the tan wire (this was my issue) prior to pulling off the connections and there was. So this meant it wasn't the switch!!
I then looked up and down the wires looking for the short. I did see that there was black tape around the LG wire and a Gray wire but didn't think twice because I was looking for a short between the LG wire and a Tan wire. I stepped back and looked at the wiring diagram and and went back to the two fan switch connectors. LG, yes, OR, yes, Y, yes, LBL, yes, Tan... NO!! but there was gray wire! And guess what, the gray wire was the one taped to the LG wire. I pulled the tape off an they had been tied together and might I add quite professionally!
So two things: 1) the wiring diagram C60 E9 is wrong! The wire going from tab 6 of the blower switch is Gray, not Tan... or at least mine is. 2) my guess is this "fix" (toeing the two together) was done because the diverter switch was not working and they would rather have AC on at all costs.
I fixed the wires and everything is now working as far as I can tell. I'm still waiting for my new diverter switch to finish up. was worried that I wouldn't be able to get the fan switch connectors back on but it wasn't too bad.
Time to go put the car back together minus the glove compartment until the diverter switch arrives.