Well my initial hunch was correct! I tightened down the center nut too much which over-compressed the horn contacts and sent one of the springs out the backside. You can see the upper horn contact spring has come out and is touching the indicator bulb circuit board. This is why the LEDs were coming on
I started taking it apart piece by piece to see if I could narrow down the issue. I got all the way to the Grant adapter and the issue came back up as soon as the adapter separated from the horn contacts. I noticed the lower contact was nice and firm and the upper one was soft. Had I checked that or even looked at the contacts from the side I would have seen this haha:
The wire/brass plate that holds the spring in the horn contact had come loose so I bent it back into position and it snapped back in. Tighten the center nut down to 20-25ft lbs or until its tight enough that it wont separate and your horn contacts are compressed but still have some throw left