Okay so after ordering parts and having a repair shop work on my manual climate control and then me actually examining the faceplate and the climate control switch cluster to look at how things work, it seems to me that:
1. The recirculate knob is supposed to turn with almost no resistance, and by turning it to outside air, I am actually making a metal piece touch another to send an electronic signal to use outside air.
2. When turning to the left to use outside air, if I go too far and there's a click, the post can be pushed in and it can fall inside the dash. (Tried it on an uninstalled climate control switch and observed)
3. When the post is properly attached to the dial knob it wouldn't get pushed inward, so nothing to worry about.
4. I found that the post was missing initially, but that is because it had fallen into the dash when I was removing the faceplate and reinstalling it.
The moral of the story is: If that knob feels loose, that's how it's supposed to be... I wish someone had posted that before
When changing lightbulbs, the recirculate knob should be turned to the right before snapping the faceplate back on to prevent this from happening, otherwise it would be permanently in fresh air mode - which isn't that bad I suppose.
P.S. on the brighter side, I have replaced the brake pads, rotors, KYB Struts, strut mounts, shocks, NGK Laser Iridium spark plugs, installing new Continental tires, New Replica wheels, and TPMS sensors, also getting bodywork to remove some minor dents/scratches and replacing the scratched up front air dam at the bottom of the bumper. Very happy with the progress!
