I am the original owner of a 2006 Prius. If I put battery in the key fob, it will occasionally trigger the car alarm. However neither lock/unlock buttons work consistently. The lock button works every now and then. I can insert the key fob into the key slot and can start the car. By the way, the tiny LED in the key fob blinks when I have a battery in it. What does that indicate? That is my only key now. I understand without a fully functional smart key fob, I can't even get the car to accept a replacement fob by doing the "chicken dance". Any suggestion will be appreciated. TIA.
It indicates the fob battery is low. It needs to be replaced. Check any new battery with a voltmeter, especially these CR2032 button batteries, as there are too many new batteries that have sat for too long and are in fact flat when sold. A new CR2032 should be 3.2 - 3.4 V when new. If they are 2.9 V (or lower) you will have problems with your key fob.