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I work with timers and electrical devices.
If I understand correctly you replaced a 3-way switch.
The new switch has 3 screws (plus green ground screw)
You put the Hot wire on the dark screw correctly.
You attached the two travelers to the brass-colored screws.
The two travelers are red and white.
You connected the ground wire to the green screw.
The ground wire is not supposed to be connected to with the white wire, and I doubt it is because that would trip the breaker.
The lights are working correctly.
If you followed the formula above to the letter, then the lighted switch should light up.
My best guess at this point is that the lighted switch is defective.
The Pass and Seymour webpage does not have manuals to look at like Leviton and Lutron products.
As a result I can't pour over a manual and put a magnifying glass on the wiring and wording to see if there is something we've missed.
But it's just not that complicated ... the light switch should light up.
At this point, I suggest you re-read the instructions (just in case?) and then swap the switch for another one ... or get different brand.
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