The issue with the Citroen Picasso headlamp indicator dimming and turning off when the right indicator is activated may indicate a problem with the electrical system, such as a faulty relay, a short circuit, or a wiring issue. It could also be related to the bulb itself or a poor ground connection. Checking the wiring harness and connections for any signs of wear or damage is advisable. If the problem persists, consulting a professional mechanic for further diagnosis would be recommended.
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