I have had a few occurrences like that in the past, before I cranked up the torsion bars and replaced the accumulator spheres.
The truck would raise to high, but before it "locked in" to position it would drop just a little bit, at which point the light would go back to normal. The truck would almost be at the correct height, but not quite. I also tried the test of turning it off, waiting a while, and then turning it back on. The truck would autolevel itself and the high light would come on. Also, if I just drove off with the truck showing the normal light, but near the high position, it would stabilise in the high position if I went over a few bumps, or drop to the normal position when I got up to speed.
I never diagnosed the cause, but I suspect that the pump is a little weak and struggled to lift the weight of the front with all my extra gear on there. The rear is well supported by OME 862 springs, so I think it was the front causing the problem. Since I have cranked up the torsion bars, the AHC pump doesn't have to work as hard to lift the front, so I haven't seen the problem again. It was rare anyway, and I suspect in my case it was in part due to hot weather, since it seemed to occur only during hot weather, and usually when the AHC had been "exercised" a bit.
I found my torsion bars were set near the bottom end of their adjustment, and cranked them up to near the top end when I fixed my suspension. As Tom suggests, try to tighten up the TBs and see if the problem goes away. I found that one turn of the TB adjusting bolt was equal to reducing the pressure in the AHC by about 45 psi. Therefore, I would suggest that you tighten the TB adjusting bolts by two full turns each initially, and see how you go. I also suggest that you clean the threads, soak them in some WD40 or similar overnight, and get the correct sized socket to do the adjustment. I had to replace one of my TB adjusting bolts and associated parts at a cost of about AU$150 because the thread was badly damaged. I suspect it was like that before I started, but it could have been some dirt getting in when I started adjusting it. With the front wheels completely off the ground and the front suspension extended, you should be able to easily turn the TB adjusting bolt with a one foot bar. If you have to put a breaker bar on it, don't. Something is wrong.