The way your subVI is set up it will be called from your main VI, run until it completes, and then return control to the main VI while passing the final values of the booleans. The intermediate on and off states inside the subVI will not be passed to the indicators on the main VI and I'm guessing this is the "error" you're reporting?
The way to have a subVI affect a control/indicator on the caller's front panel is to pass a reference to the caller's front panel indicator to the subVI and use a "value" property node inside the subvi.
Try the attached to see the concept and adapt it as you need. There is a bit more information here and here.
