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I have never experienced the "Extended Mode" situation you describe. It just be that the vehicle just needs to be reprogrammed. I do notice the bounce you describe, but I doesn't feel dangerous to me.
So a little update. I dropped the Vehicle at my local LR dealer last Wednesday. They tried to perform the Air Suspension calibration three times. Failed all three times. They then pulled the Johnson rods out and re-installed the stock rods. Again, tied to calibrate the air suspension twice. It failed both times. I was told they tried to reset the parameters since the system was not linking the numbers they were entering. Eventually, they got the calibration to go through. however, gave No real evidence as to Why it took this time (6th try). Anyways, Land Rover is signing off on it and saying it's good to go. However now I'm getting the vehicle back with the Stock rods. Im a little hesitant to reinstall the Johnson rod, with fears that it will trigger faults/ throw the system out of calibration.
What do ppl think? should I try to re install the Johnson rods?