What switch are you using? If it's a typical on-on-on as you'd use for a three way pickup select switch, the poles probably aren't connected per your green lines in the middle position. An "on-off-on" three position mini switch would work the way you've drawn it though (the second switch position essentially results in no connections between the contacts, which is what you want).
Link Removed This is the switch i'm using (which based on the website description, is in fact an on-on-on switch).
The middle position has the capacitor which bridges both middle poles currently (& as per the schematic). How should i proceed with achieving the bypassed tone with my current switch? (if at all possible)





The housing market here is just insane. Most homes go for 10-15% over asking in a bidding war, and if you have any conditions, you're very unlikely to win. So a pre-purchase house inspection was out of the question, as is pretty common here.
I moved in over this week and the only surprise was the garage. I was not able to see inside except through the windows and it looked good, but there was a LOT of stuff inside of it, preventing a full view. Turns out the floor is loose gravel, recently poured and raked in and not tamped. In effect, it's not usable for a garage, storage or a workshop until that's addressed. If I drove my car in, it would undoubtedly sink into the gravel. It's also too loose to set up any tools as they can't be leveled. I've got a couple of quotes for a poured pad, but I'm not sure that can be done easily with the existing structure. It's possible it will have to come down or be moved altogether. Since it's a smaller garage with a 10 foot ceiling, I can build a wood floor to at least have a workspace, but regardless of the approach, it's going to be a pile of work and some change. 