Stu, did you mean to say "DISengaged"? It should work just like the pre-Rushed More bikes, with the starter locked out only if the bike is in gear and the clutch is engaged.
I did some reading elsewhere and it seems more than a few people have had problems with the interlock on 2014 and later bikes. Some indicated they thought it failed right after the bike got wet, as in an enthusiastic wash job or heavy rain storm. Harley has had some serious issues with both switch packs btw, more so the right side. Both have been revised, the right side twice, since 2014. I suggest people get this stuff sorted out while still in warranty, since the cost of a repair with the new CAN bus system has escalated by about 850%. Yes, that's not a typo.
Jerry