I have the PP70 and the air pressure drop is normal. When a small desiccant filter was put in the line it was even more dramatic - had to take it out.
Anytime you bleed off air in high volume there will be a pressure drop. Try just opening the air line (no restriction) when it is not hooked up to the PP60. You will see the drop in pressure at the tank gauge. Closing the line will let the pressure in the line recover - unless the compressor goes on.
No idea about the 4T switch. It should work when tested.
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