Hi everyone,
So sorry for the late reply. The 3 way valve labeled #1 (suction valave) was installed improperly. I could not turn the handle to draw from the spa only. So after watching Youtube videos, I removed the diverter and installed it in the proper way so it can actually draw from the spa suction only. I also installed an actuator on this valve and made it face the same direction as the return valve. Now pool mode works properly and spa mode correctly circulates water from the spa back to the spa.
However, now I have a bigger issue. When I run spa mode, it seems to slowly drain water. I seem to lose about inch of water every 15 mins the spa mode runs.
Also, my pool for drained a bit after using spa fill mode to fill up my spa back up. I did not notice my pool's loss of water till the morning because it was dark outside and I was focusing on the spa.
In the morning, I was freaking out that I did something wrong and caused the pool to drain. However, I think I did the pipes right. Instead what seems to explain my issues is that the pipes from the spa suction to my machinery has a critical leak or issue. Hence, why that 3 way diverter was installed in such a way that you could not turn the handle to draw from spa suction previously.
Unfortunately, I just bought this home and was not told this and nothing was written down on the pipes to indicate this so I found out the hard way.
I see no obvious signs of leakage near my equipment, nor my roof for solar heating. And everything seems to be fine as long as I do not run spa mode i.e draw from spa suction. Even spa fill mode (pool suction and spa return) runs fine. This leads to me to believe that the pipes underground that involve the spa suction has a pretty bad leak.
My question now though is how much does it cost to fix an underground leak usually in California?
Note: I added pictures of current plumbing layout, pool depth
@ajw22 I also added a closeup for what the thing marked in yellow says.
Edit/New Question: The thing circled in red (#3) which is the valve for the solar. It has an actuator on it and I am assuming when I press on solar button on my panel box, that actuator should move. It does not move at all. Where should the wire for that actuator connect to on the panel box?