No - not "bad" just not releasing the plunger so the switch can be used.
I've got down into the pedal assembly on my car and found some things out too, and even I don't appreciate this. I found stuff that may interest you...you may already know, but if you're having problems with the switch plungers not working right - I have some ideas to help you...
Black plunger
Ford Part: 3M5T-13480-AC - Brake Light Switch (Black Body) Normally Open - Closes On Plunger Out
Fords Replacement:
Blue one...
Ford Part: AA6T-9C872-AA (Blue Body Switch) Cruise Control Disable (Normally Closed - Opens when Plunger out)
I guess you came along at the right time. For I found my Brake Light Switch needs replacement too.

Both of these are shown with their tabs and plunger Locks off - meaning that the plungers are active to work the switch inside their body. This makes the plunger appear shorter and have some resistance to indicate the switch and it's return spring are engaged.
This is brutal...

So my Brake Light Switch had to be manually reset so I could do these photos and verify that the switch is working.
The Blue one still has tabs and the LOCK still present - looks a little beat up but this is +5-years down the road since they did any work on the pedals...(Warranty - discovered loose flange nuts under car so brought car in for inspection) Found that the Master Cylinder to Brake booster nuts were gone - the nut under the car fit this bolt - so they fixed loose hardware.

So upon further inspection - found the LOCK control sheared off the Brake Light Switch side, so I'll have to get one - will try locally.
However, you situation needs some more work. When the LOCK is not engaging the switch, the Plunger can go in and out all the way with little resistance to finger pressure - that means the switch inside is not engaged. So you'll have to turn (rotate or rotation act) using a narrow tip tool - screwdriver or similar and try to move that LOCK - with the plunger all the way in - to help engage the switch.
Once that is done, you'll see the Plunger sticks out, and has some resistance to it - but not ALL the way out with little resistance - this means the Plunger is set to work as a switch. To mount it, you may have to press the brake pedal down to the floor to make room so you can thread the plunger to it's mounting socket and align the tabs of the switch and press it in, flush, with 1/4 turn to hold it and mount the switch to it's socket. You can then verify it's hitting the paddle on the pedal and observe it's operation.
It seems that the "Service Now" warn message was due to the fact that the Blue switch, was not getting sensed as working - so it kills Cruise control and Hill Assist because it can't detect the switch by your pressing of the brake pedal - it would message you on the console asking you to press Clutch and Brake to Start - on starting.
Since clutch work was done - the Blue switch works OPPOSITE of the Brake switch - meaning it OPENS when you press the Brake Pedal (Affects Cruise Control and Hill Assist) and Closes when the Pedal is released - The Black Brake Stoplight Switch is CLOSED when you press the Brake pedal (Lights Brake Lights) and returns to OPEN (Brake Lights Off) when you release the pedal.
You might want to investigate that work...