Headlight Sw Operation

All lighting controlled by light switch should work whether ignition is on or off.

I do not believe 68 used to have park lights with headlights, don't remember for certain.

No, something's weird. As intended, the headlamp switch works exactly the same whether the ignition is on or off. Perhaps a previous owner installed a relay interlock with the ignition so as not to leave the headlamps on overnight, or perhaps you've just got wonky wiring.
OK...... lets try again. Are you saying the headlights should be on when you pull the headlight sw knob out and does not matter if the car is running or not.

Sorry for confusion. If I remember from family car 50 years ago, headlights are ON if car is running or not and when you pull headlight knob completely out. Contacts B1 and B2 on headlight sw appear to be the control so I will investigate further.

Thx again...