As mentioned, the PNP switch is a very common problem. You
can see more about this at:
http://volvospeed.com/Repair/pnpswitch.htm
A new switch is about $80 with a couple hours labor to replace.
Typically first seen when the weather turns cold (theory being the
grease in the switch is a bit cold at this time). Failure
mode is slow so you can live with it for a while (restarting
the car often clears it).
When the PNP switch went on our 95, shifting from 3rd to D would
cause the up arrow to flash and locked it into limp home mode.
Only happened once but I only tried it once. We had the up arrow
light on and off for a few weeks up til the point I tried this.
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