Welcome aboard!
I don't know the effect of running auto targeting has on the PK, but in manual targeting, the indicator button/light is how you turn the position tracking capability on and off. The PK is separate from the TDC and in some cases you may choose not to use the PK or you may want to use the PK. This button gives you that control.
So if you switch targets or your target makes a course/speed change, you can toggle it off (to clear) and on again to start tracking based on the new data you input.
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