Electrical No Dash Or Running Lights Unless Switch Is Held Just Right

just got a 97 v6 and discovered that when i turn on the headlights the dash lights and running lights do not come on, only the headlights. they also do not come on when the switch is set to just the running lights, but they do however come on if i push the switch slightly back in from the headlight position. i thought it was just the switch so i bought a new switch and it still has the same issue. the connector does look a little melty where the red W/ yellow stripe wire goes into it but the rest of the connector besides that one spot looks fine.
what could be the problem? the connector? or a short somewhere? all fuses are good

also with the old switch when you press it slightly forward to get the running and dash lights the headlights will stay on, but with the new switch they will not.