Using this wiring, my tone pot only works as a volume pot. While looking around, I noticed that the same diagram using a toggle instead of a 3 way blade has a ground that this one doesn't. Should the lug in question be grounded on the diagram in question?
UPDATE: I wired my guitar exactly like the diagram and I was right, the diagram is wrong. The lug in question does need to be grounded.

UPDATE: I wired my guitar exactly like the diagram and I was right, the diagram is wrong. The lug in question does need to be grounded.

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