OK, I've just looked at the code to remind myself what's going on!
The chute doors are tied to the wingfold animation, with the chute itself as a custom animation and visibility code. The chute should only be visible if the ground speed is above 40kts, and the wings are "folded".
When the switch is in the armed position it tells the wings to "fold" as soon as the aircraft touches down. Once the wingfold is triggered the chute doors open and the chute becomes visible and deploys. When ground speed drops below 40kts, the chute hides, simulating dropping the chute, and the doors close resetting the system.
That's how it should work anyway!
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