The diode tests are less important than knowing the open circuit voltage is 12 V.
There are a number of approaches that can be used (I never like like suggesting the best, nor do I list them in order - beware)
1) Sort of an isolated approach. The indicator circuit is totally separate. This would need a double pole switch.
2) A semi-isolated approach where diodes attempt to isolate the circuits somewhat. The "diode test" would confirm if this is possible.
3) A monitor of the 12 V to ground signal without a direct regard as what is the logic low. Just as long as the switch takes it below logic low.
i.e. if the logic low were 10V, and we detected 400 mV and the switch took it below 400 mV were OK.
4) (Not considered). Measure short circuit current and getting a better idea of the logic thresholds. Opens up using an opto-isolator. Current measuring is too difficult.
As I said earlier, some circuits don't like their inputs to go above the power supply voltage. There is usually an inherent diode in these devices that can draw too much current if that happens. "protecting" the inputs is one way to solve it. Not powered and having a 12 V signal applied means the power supply of the circuit is 0V, not its intended operating voltage.
The automobile environment is "hostile". Take a look at figure 3a here:
https://www.littelfuse.com/~/media/...utomotive_tvs_diodes_application_note.pdf.pdf
That note puts the environment it in very simple terms.