I can't figure out what that thing is doing...
It seems strange to have 118V in a 230V device.
It looks like the indicator light is in series with the switch. But, that would mean the light is completely off when the switch is off.
Is there something else in the box we can't see? I see some bare wire or solder in the middle of the blue wire. What's that connected to? Is there a bare wire connected to the bottom of the switch above where you labeled "rocker switch", or am I seeing metal inside of the box? Is that where brown is connected to ground?
I'm not entirely certain if what I measured is AC or DC. Is there any way I could tell using my multimeter?
With the meter in the DC mode, most meters will measure zero (or near zero) when connected to AC. Depending on the meter, it may also measure zero in the AC mode when connected to DC. If you are truly measuring DC, you should see a minus sign when the connections are reversed. Try measuring a battery (DC) to see how your meter responds in the AC mode, or when you reverse the connections.