The immobilizer won’t stop the engine from cranking, but will turn off fuel and spark, so you’d get a crank no start. I’d make sure you attached the starter sense wire and make sure it has good connection (it’s unplugged in one of the pics you just posted). Then I’d do what the other guy said and unplug the transponder because that’s what actually commands the key light to flash or not, and with the immobilizer turned off with the tune, the unit is gonna freak out because it’s not getting a signal from the ECU that the key matches.