I think we are talking past each other....again...
"the purple wire" is keyed 12V coming from the key switch. You agree?
You can use the purple wire to power the gauge when the key is on by connecting the purple wire to the gauge+ terminal. You agree?
The house 12v is on when the battery switch is on. You agree?
The switch is lit by 12v on pin 2. You agree?
There is no point in connecting the purple wire AND the house 12V to pin 2. Do you agree?
You can apply 12v house to pin 2
or run a wire from the gauge + terminal (the purple wire is on that) to pin 2.
But there is no reason to do both. You would have two sources of 12V power to the pin.
If you do that the gauge always has power whenever the battery switch is on, regardless of key position.
My point is you need to pick one 12v source. Either the purple wire or the House 12V
The OP wanted to power the gauge with the switch not the key.
To do that he would need to disconnect the purple wire entirely and use the house 12v on pin 2 and the jumper from 1 to 3 and a wire from there to the gauge+ terminal.
That would result in both LEDs lighting in either ON position and the gauge getting 12v in either ON position.