Alright guys, apologies if I am reviving an old thread but i think this may hopefully help others. I believe this is the correct solution WITHOUT having to pull the compressor fuse.
I spoke to shocksims by xineering, who were willing to help and were extremely professional, told me that the ride height sensor needs to be clocked so thats its in a range between 1 - 4 volts. This tells the computer that the suspension is in the correct range. More info here on their
site in the Bypassing Z55 "Pre-2015" Magneride section located at bottom of their FAQ page
Before even trying to set the ride height sensor, I pried open the sensor link arm that connects from the sensor to the body. First I pulled it off from the sensor with a trim tool then did the same on the lower side that connects to the body. BE VERY CAREFUL and tug gently but firmly with a trim tool because you can easily break the ride height sensor. These photos are for demonstration purposes as installation was already complete at time of photos.
You can see in the picture below that I put a ziptie as tight as possible around the sensor arm and the sensor. To verify voltage changes, I put two t-pins on the middle (green) wire and right (orange) wire of the connector that goes into the ride height sensor and checked the volts when the arm is fully extended with a multimeter in which it read around 5v, once clocked back and zip-tied it is around 2.5 - 2.6 volts. (Third photo)
Lastly I add the resistors as mentioned many times in this thread with T taps, just in case anyone wants to replace the air ride components the connector is still there. I did add electrical grease inside the T taps and connections to prevent moisture build up and corrosion. Currently the wires are taped up to the resistor but will solder it up soon and self tap into frame.
Hope this helps someone!!