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The diode should not effect the normal operation of the switch. It's like a one-way gate in the circuit, allowing the current to flow from positive to negative. It has a value when you switch off allowing the current stored in the relay coil flow harmlessly to ground. I know it's like this in automotive use, I can't imagine your vintage Cessna is any different. If it were my C170 I would run this question by your A&P, just to be sure.
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