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Gotta check under the dash.. Not sure exactly how the corolla is, but usually there are vacuum-actuated flapper/doors that direct the airflow when you switch the position.. Dash, dash/floor, floor,etc.. Probably have a stuck door or disconnected vac. line, or something along those lines.
Get a haynes manual and they might have a diagram in there that you could follow and check out what's going on under there. Might need to remove part of the dash. Just be careful with the airbags.
But that's my guess.
Good luck
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