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Why does the unit not operate when wired like the recommended diagram (Figure 35) on page 76 of the 30072-450-61 June 2002 ATS48 manual for reversing with isolation contactor?

Figure 35 contains an error.  

Observe the ATS48 Controller designation to the right of this page.  Along the left hand side of the controller, notice STOP, RUN, LI3 and LI4 which all have connections to their terminals.
The connection to LI4 should be removed and connected to the +24v terminal.

This configuration would then allow proper operation of unit.

CTA-ID : 2017116
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