[1] Did the person clean the PNP switch, or the PNP harness connector?
[2] With the AW30-40LE or -43LE, there's a speed sensor on the transmission. The ABS speed sensors at the wheels aren't connected to the transmission shift system. The RPM sensor (as it's called) has its own connector on the trans.
[3] If the car wants to start in 2nd, the trans is in limp home mode. You want to avoid driving it in that mode.
[4] Seems to me like the PNP switch itself is cactus.
[5] Try the following - with ignition on but without the car running, rapidly move the auto trans shifter from 'P' to 'L' (or '1') back and forth, about a dozen times. Turn off the ignition, then start the car. If you're lucky, the arrow will stop flashing and so will your mode switch lights; if unlucky, I'd put money on betting your PNP switch has failed.
How far from Berry's or another reliable Volvo specialist are you?