I have a Leviton Decora Smart Switch and the LED Indicator does not set to how I have it configured in the device settings. I originally set it to be on while the switch is off, which is how it is now. I changed it to never be on, but the switch remains to have the LED indicator on while the switch is off.
What driver are you using?
For the Leviton, the Generic Z-Wave Smart Switch. I do see this with my other z-wave switches. I want not concerned about the other switches because they are in locations that do not matter or they are being changed out for the Leviton (which has instant on and instant reporting).
And you hit save and then hit Configure?
Yep, more than once.
This is the driver I use for my Leviton dimmer...don't know what it would take to use with just a switch though.
The Locator LED can be set using the switch itself:
or via temporarily changing the driver to the " Super basic Z-Wave parameter tool" to change parameter 7 to 0. The stock Generic driver does not have the ability to change Locator LED.
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