The first issue I see is you want the active code to be in the true case. That is you want the security code to run when you enter the proper code Also swapped your popups.
Then I removed the sound code since I don't understand what it is doing.
The control labeled button is what arms the system.
Then the 4 simulation switches send their output to the indicators and in turn those values are returned by the shift register acting as a latch
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