Your explanation is a bit messy and I hardly relate it to illustrations you presented here.
some simple questions:
1. Where you see the "cross over switch" in the diagram?
2. Did you find the hydraulic diagram ( the one with actuators = valves )?
3. When the draw bar is in action ( when the chuck clamping direction is set to ID clamping ) are both LS activated as must? ( =at the very end of te draw bar stroke )
4. What is status of hydraulic pressure and draw bar LS when OD clamp is selected?
The solenoid is spring returned, so question is if its activated when clamping or activated when opening
disconnect the wires to see the answer.
Let's make some description of clamping / releasing, opening / closing. In case of OD clamping closing the chuck = clamping. In case when ID clamping selected opening the chusk is = clamping.