Turn Steering, try start again

[epersons]

Parked 2008 S40 5 days ago, no problems. Today, when my son was leaving for school, steering wheel is not locked, inserted key, turned to position 3 and nothing. Got the message "Turn Steering, try start again." Tried that and nothing. Noticed the following: When the key is turned to 1 and 2, all dash light and headlights come on. At three, the headlights go off, the arm rest buttons go off and only CHECK ENGINE stays on. Once the key is released, all indicators and headlights come back on. OBD shows no codes. There is a "turn-signal" sound in the lower steering column area and a clicking under the hood. I reviewed all related posts I could find here and most related to a locked steering wheel. Mine is not locked. Put my Schumacher battery tester/charger on it and initially read 11.7 volts. Charged it for 1 hour and it reads 13.5. Still no start. Any ideas will be more than greatly appreciated.