Update:

Replaced the LCP in cabinet 2 because of HDLC errors. That was causing random transfers of calls from extensions in cabinet 2 to other extensions. The phones in cabinet 2 would basically do a fast reboot. This did not fix the lights on phones.

Last night I did a memory clear and populated all settings manually. Finally the phone lights are working!

Also, a side note: ome people who have extensions in cabinet 2 complained that they had to dial very slowly as some numbers would be dropped during dialing outbound. I hope this fixed that issue as well.

So, all of you techs were definitely right. Corruption in the database setup.

Thank you all for your insight and help!

"Try not to become a man of success, but rather try to become a man of value" ~ Albert Einstein