So the light was off with ignition on, light is on with engine started. But talking to one of my tech's who's a CAT diesel tech and electrician said that light test doesn't conclude anything other than there is power applied all the time. He said what needs to be determined is if the switch is a open-loop or closed-loop switch because the one-wire lead going to the oil pump switch is actually a signal wire, not a hot wire. The light test only provides a hot signal. So I had tested the switch with a meter in ohms. This switch is designed as a open-loop. Meaning there is no connectivity while the there is no pressure on the diaphragm inside the switch to close the loop and send a resistance to the PCM signal and then to the instrument cluster gauge. When there engine is running and oil pressure pushes on the diagram in the switch, creating a contact to the signal wire, then there is resistance and that is what sends a signal to the PCM, then onto the gauge.
So the big question is since I tested two new Motorcraft switches, if 1.) The oil pump/crank, etc. is not providing enough pressure at idle AND high rpm's to hold the diaphragm in the switch closed (creating a signal to the gauge to be showing pressure), 2.) the gauge is somehow going bad in the cluster and low and real high resistance causes the resistor or PCM to make the gauge erratic at high rpm's and turns it off at low rpm's, 3.) The new Motorcraft switches that have had updated p/n (per Ford), do not hold the same predetermined pressure calibrated settings within the switch, meaning, the high and low pressure does not equal the resistance in the switch that it should to put out a proper amount of resistance in the circuit to keep the gauge on and steady in the cluster.
This sort of actually makes since that possibly the pump or crank (worst case) at real high rpm's is loosing pressure causing a break in the circuit at the switch on & off rapidly, and at low idle in D, the pressure drops off the switch, opening up the loop and now there is no resistance in the wire to the PCM to the gauge. My next step will be to ohms check the loop with the engine running and see if at idle it actually shuts off and kills the ohms signal. If that is the case, then the switch is opening the circuit at around 11-12 psi, which is what I saw on the pressure gauge. He also mentioned that on a pressure gauge, I may not be able to see the small variations in pressure that may be causing the cluster gauge (switch) to rapidly shut on/off causing the erratic behavior of the cluster gauge at real high rpm's at WOT. What a pain in the ass to deal with.