You are trying to perform a factory reset on a Basic Keybox, but the diode on the keybox indicates the reset has not been performed, and the factory default code does not work.
Suggestion: Chances are you are performing the incorrect factory reset, on the older models the reset is performed by moving a bridge connector on the PCB. (see image for how the old PCB looks like and the location of the bridge connector.
This is how to perform reset on the old model:
1. Make sure to disconnect all power, also from battery backup
2 Move the bridge connector from "Normal" to Reset" then connect power again.
3 Wait about 10 seconds, then move the bridge connector to the "normal" position, with the power connected.
4. All settings should now be Factory default.
