Below is a link to the trouble shooting guide for 41260 transfer switch. When unit does not transfer to generator power correctly when the generator is turned on. Here is their answer --> Note that the ATS takes approximately 35 seconds to complete the transfer from shore power to generator power after the generator is started. If this amount of time has passed and the generator contactor still does not engage, check the following: • Check the wiring from the generator to the input terminals of the ATS. If the terminals are wired incorrectly, the transfer switch has a protective feature to prevent the transfer switch from engaging the contactor under a reverse polarity condition. Turn off the generator, disconnect the generator from the ATS unit and correct the input wiring. • Check the incoming generator circuit breaker to make sure that it is not tripped.
Try this and if it does not work let me know and we will get you an answer on what is going on. https://www.rvupgradestore.com/v/vspfiles/assets/pdf/41260-Troubleshooting-Guid