The VDC doesn't turn completely off.
 

I was just out having some fun doing donuts, and drifts in a snow covered parking lot. I of course turned the VDC off. After a few goes at it, I started pushing it harder. I was pretending to be in a world rally championship on Speedvision. What a blast! Sure enough, I see the SLIP flashing, and hear the growling sound. But I didn't feel much of it working. I double checked, and the VDC off light was still on. It seemed to do this a few times during massive drifting, but not really that much during donuts. So, maybe the VDC is less sensitive and intrusive when it's supposed to be off, but never really off. Has anyone else experienced this?

Interesting. Doesn't seem right. Pull the fuse. :D

I did some donuts a couple months ago--showing off to WRX AWD owner. Once I finish, the SLIP warning light stayed, even while I was driving like a blue hair. I just simply shut it off, turned the car back on, then I was in business w/ no warning lights. I haven't done it since.
Hogan

strange, see the dealer, when I turn it off, I can dump, and all that will happen is burning rubber. The VDC should completely disengage.

I can dump and spin the tires all day with the VDC off. But, if you do some massive drifts, it tries to engage anyways. I see you probably don't have snow, so you may never see this happen.

Could it be the LSD? Mine comes on and says slip when doing tight turns in the rain and a wheel breaks loose.