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There is a microswitch in the latch. That is why your dash light is on. You need to adjust the latch so it latches correctly. Loosen the bolts but don't remove them. There is some slight movement of the latch up and down. Move the latch into a correct position so the engine lid closes and latches shut. Tighten up the bolts. Takes some finesse so go easy.
The trick is to not go too low with the latch - or it will latch, but it won't open... ask me how I know! I had to loosen my motor mounts to drop the engine a little so I could open mine.