After trying several suggestions I tried this and it worked!
1. Opened driver door and kept it open.
2. Turned key on position II.
3. Pressed odometer button and held it down. (It had some mileage on both T1 and T2 when I started don't know if this makes a difference.)
4. Turned key on position III within 2 seconds of pressing the odometer button.
5. Waited until center warning triangle started flashing (about 4-5 sec).
6. After that I let go of the odometer button.
7. Turned off ignition fully.
8. Turned on ignition and checked that code has reset.
I think the trick is to wait until the warning triangle begins flashing. I did the second time I tried this and it reset. 2008 Volvo S60 2.5T
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