It probably didn't need to go into off-road height, only that the raise switch be pressed to take the suspension ecu out of its error mode, perhaps then requiring the lower switch to be pressed to cancel the off-road height mode request.
If the suspension ecu is not fully operational as well as every other system that special programs uses then special programs are not allowed.
I suspect the suspension or some other ecu considered that the battery voltage was too low to run the compressor and therefore the suspension ecu went into a basic mode, with the visual indicator being the flashing raise and lower LEDs.

