The flashing light means it either failed to engage or disengage. Since you were trying to engage it it is likely the lack of engagement that is causing the blink. Unfortunately the factory e-lockers have some issue with this. While is is possible that the issue is only with the sensor not detecting properly there isn't really a way to confirm without diff disassembly, so you should be prepared to pay for for major work before you start any. Otherwise the labor will be doubled. (once to diagnose, and then later to repair.)
If the sensor is correct and the locker isn't engaging the bypass mod won't help. Additionally the stock lockers do not work with much speed, As a result, I rarely use them when a bunch of wheel speed is in play.
I know it sucks but at the moment it looks like you don't have a front locker.... :grayno: