Not sure how the 753 function lockout works, but on my 450 there is a rub block on the left side that activates the lockout. On the safety bar, there is a curved piece of strap, that works the switch when you drop it down. On mine, it is approx. 10-12" from the top of the roll cage.
Sounds like the PO may have put something on there to activate the switch, and it either may not be pushing in far enough, or has loosened up enough to not make it work right.
Personally, I would want that feature to work, even if you have to put another switch in there somewhere. Stepping on one of the pedals, when getting would cause the lift arms to raise causing injury. You could probably find a good used safety bar in a salvage yard, if you wanted to put one back on there.