I found it, The status is designed to turn red (wet) when powered up . The installer needs to press the spindle on the transmitter for 5 seconds to reset the receiver. (attached a picture)
I tried this multiple times, but it does not seem to work with my Rachio Gen2 controller.
I enabled hte sensor in the controller settings and even restarted the controller…still shows wet always.
I’ve just disconnected the sensor till I find a way to make it work.