This behavior would be normal if activating the limit also sets it to the state where it would be when the stage enters the limit. This will depend on the polarity that you have configured for the limit switch. An easy way to figure this out is to go inside Measurement and Automation Explorer and under the motion controller settings go into the 1-D interactive advanced panel. If the light for reverse limit is red even when the limit is disabled, it means that you need to change polarity configuration under Axis Configuration and reinitialize your board. You will now be able to run a find reference without getting the error. Also know that if you start a find reference while sitting at a limit (e.g. find forward limit while sitting at reverse limit), you will get this err
or unless you disable the limit when you first start the move and enable it after half a second or so to ensure that the switch has been cleared. This is easily done by clicking on the Smart Enable/Disable box under the find reference configuration in MAX.