Couple possibilities: 1) the intake valve wasn't put back in properly and it isn't really in the Dry position, even though the knob may say so. Check the range of travel of the selector knob. It must be 1/4 turn-only. If you can turn it more than 1/4 turn, remove the knob from the top and turn the stem somewhat with pliers, then put the knob back on and try it again. When you have it so that it can only turn 1/4 turn, then it's oriented correctly, and you can screw it back down.
2) The piston "O" ring has popped off, or isn't sealing properly. This allows the water to go from one side of the piston to the other side, and recirculate it.
My money is on #1...