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Guess I answered my own question. Just put a liberal amount of graphite lock lube in it and could not replicate the problem. It was normally happening when I would remove the key rapidly, but if I did it slow and deliberate there was no fault. I just rapid fire inserted and removed the key with no faults. Ill update later this week.
I had this issue occur recently. Remove key from ignition, and the doors do not unlock. Open the driver's door, and a message appears on the dash saying, "key in ignition", along with chimes.
In my case, the issue was with the ignition switch, which is on the lower left of the steering column, and not the key barrel itself. Inserting the key pushes a long rod into the ignition switch. The rod is what turns when the key is turned. The rod also pushes down on a plastic plunger piece with an attached spring and metal bit, that then press against a clicker that sets off the "key in igntion" message. The plunger assembly had gone askew and needed to be rebuilt.
You can access the ignition switch by removing the kick panel under the steering wheel (held in on top by two metal tabs), removing the upper and lower steering wheel housing (the lower housing has three torx screws), and then pulling the steering wheel all the way towards you. Plastic tabs attach the ignition switch to the rod.
I believe the plunger can be rebuilt without disassembling the ignition switch, but in my case the spring and metal bit had detached from the plastic plunger, so I needed to open up the entire thing. Be careful as there are additional springs, a ball bearing type piece, and contacts within the ignition switch that can easily pop out of place.
just went through this myself. the plastic plunger in my case was barely jammed with dirt and old, semi-hardened grease. thanks @hell pie for the write up! here's a few pics to go along with it key in ignition sensor there's another one of these tabs on the opposite side of the switch here's the plunger that gets stuck