After a bit of a look last night this seems to occur when there is weight applied to the forks. If I’m not putting any pressure on the forks then everything behaves as expected but if I put it in lockout, apply weight and move the blue lever to 1 o’clock then lockout ends up in that position.
Will pop it out and have a look at things as per suggestions, think I might I drain the oil and ensure it’s all at the correct levels at the same time.
Seeing I had got these forks for such a good price I had been pondering an upgrade to an RCT3 damper so might just move forward with that idea a bit sooner.