2007 saturn ion passlock light off after relearn sequence failed

See if this helps. Videos and articles.

https://www.google.com/search?q=2007+Saturn+Vue+2.2.+Relearn+sequence+for+the+ECM

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You can't bypass it. Have to code read. You can buy a new key and program it in. Passlock III is just a relearn.

You may need a locksmith to recode the passlock system.

Passlock cannot be disabled. This is your life now, you must obey the computer.

But srsly, how do you know that is the problem? Have you scanned for DTC's?

A common problem on the ION is a faulty ignition switch.

The security, antitheft, or passlock light is a visual indication that something in the car's antitheft system is failing. In most GM cars and trucks there is a hidden system that most people are unaware even exists. From the moment you put your key in the ignition, there begins a constant line of communication between your key's security chip or transponder, to the ignition's lock cylinder, and then to the car's TDM (Theft Deterrent Module). These 3 parts are in CONSTANT communication. If the key is in the ignition, then these parts are sending signals to each other. The security light illuminates when that signal gets broken, even just for a second. When the signal breaks, the car misinterperates this as an attempt at theft and goes into antitheft mode. The car thinks its being stolen or hotwired because it is not getting that signal from YOUR specific key. This is why the security light turns on and shuts down your vehicle.
This link may help you find ways to bypass this or fix it yourself.
http://vatspasslockpasskeysecurityhelp.yolasite.com/

I have a very untechnical solution to this problem and I can't for the life of me remember where I heard it but it sure does work. Turn the igniton to ON so that the dash lights up. Eventually the others lights go out and the flashing "Securty" light stays. Keep the driver side door slightly ajar and sit and wait for that Security light to stop blink, usually 5-10 minutes. Once it stops blinking you can start your car. I can't promise that you won't have the starting problem again, but it will happen with decreasing frequency. Ultimately you need to have the passlock issue handled at a dealership. I say DEALERSHIP because it's a manufacturer flaw and they should be made aware of this issue everytime. They're also best equipped to handle it.

Ignition keys relearn takes about 30 min to do. 30-Minute Learn Procedure 1. Turn ON the ignition, with the engine OFF. 2. Attempt to start the engine, then release the key to ON; the vehicle will not start. 3. Observe the SECURITY tell tale light. After approximately 10 minutes, the light will turn OFF. 4. Turn OFF the ignition switch, and wait 5 seconds. 5. Repeat steps 1 through 4 - two more times - for a total of 3 cycles of 10 minutes. 3x10 = 30 minutes. The vehicle is now ready to relearn the Passlock Sensor Data Code and/or passwords on the next ignition switch turn from OFF to CRANK Important: Turn the Ignition Switch OFF. The vehicle learns the Passlock Sensor Data Code and/or password on the next ignition switch transition from OFF to CRANK. You must turn the ignition OFF before attempting to start the vehicle. 6. Start the engine. The vehicle has now learned the Passlock Sensor Data Code and/or password. 7. With a scan tool, clear any DTCs if needed. History DTCs will self clear after 100 ignition cycles. Without a scan tool you may have momentary starter interruptions while history clears itself.

Try this first, it takes about 30 min to do. 30-Minute Learn Procedure 1. Turn ON the ignition, with the engine OFF. 2. Attempt to start the engine, then release the key to ON; the vehicle will not start. 3. Observe the SECURITY tell tale light. After approximately 10 minutes, the light will turn OFF. 4. Turn OFF the ignition switch, and wait 5 seconds. 5. Repeat steps 1 through 4 - two more times - for a total of 3 cycles of 10 minutes. 3x10 = 30 minutes. The vehicle is now ready to relearn the Passlock Sensor Data Code and/or passwords on the next ignition switch turn from OFF to CRANK Important: Turn the Ignition Switch OFF. The vehicle learns the Passlock Sensor Data Code and/or password on the next ignition switch transition from OFF to CRANK. You must turn the ignition OFF before attempting to start the vehicle. 6. Start the engine. The vehicle has now learned the Passlock Sensor Data Code and/or password. 7. With a scan tool, clear any DTCs if needed. History DTCs will self clear after 100 ignition cycles. Without a scan tool you may have momentary starter interruptions while history clears itself. Good luck and hope this helps, keep me posted, be glad to help 

Sounds like it is the ignition switch. You need to purchase a new switch from the dealer and make sure that it is a redesigned one, or at least get their guarantee that the new one will not fail.

There is most likely a build up of grease inside the switch. This is a design flaw with the factory switches, but has apparently been fixed with new switches from the dealer. Like I said, just make sure it is a new one when you are buying it from the dealer. You will need to perform a Passlock Relearn once the new switch is installed.

The old ignition switch will need to be replaced. If you feel like saving yourself some money and do it yourself the follow the instructions below.

1. Remove cover behind the steering wheel
2. Unplug the switch and unscrew the two torx bolts
3. Install new switch by reversing process.

Any time a component in the Passlock system is changed, the learn procedure must be completed for the Theft Deterrent System to sync the password. The procedure requires no special tech tools or computers.

30 Minute Learn Procedure
1. Turn ON the ignition, with the engine OFF.
2. Attempt to start the engine, then release the key to ON, vehicle will not start.
3. Observe the SECURITY telltale light, after approximately 10 minutes the telltale light will turn OFF.
4. Turn OFF the ignition, and wait 5 seconds.
Repeat steps 1 through 4 two more times for a total of 3 cycles/30 minutes, the vehicle is now ready to relearn the Passlock Sensor Data Code and/or passwords on the next ignition switch transition from OFF to CRANK.

Important
The vehicle learns the Passlock Sensor Data Code and/or password on the next ignition switch transition from OFF to CRANK. You must turn the ignition OFF before attempting to start the vehicle.

Start the engine. The vehicle has now learned the Passlock Sensor Data Code and/or password.

You should be good to go. Good Luck!