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It is called the shift-interlock-mechanism. The brake light switch sends a signal to a solenoid near the shifter lever that unlocks it. When you press that button you are manually operating the shift-interlock solenoid.
If your brake lights work, the problem is probably the shift-interlock solenoid, or the wire goig to it.
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'88 Corolla, AE92 SR-5, 7A-FE swap/GT-S suspension
'87 Corolla, AE82 FX-16, 4A-GZE swap (autocrosser)
'03 Tundra 4X4 Access Cab, (FX tow vehicle/Home Depot runner)

Modification: Changing something to what you thought it should have been from the start!
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