Make sure the LED works as designed. If you press the membrane switch, you should see the LED above the pins illuminate in Conference Composer as well as on every MX392. Since the switch is a membrane switch, the LED will stay lit until the switch is pushed and held down:

Next, right click in the DEACTIVATED COMMAND column for Logic Input 1 and select INSERT, INPUT, 1, MUTE, ON. Now, whenever the microphone is muted (Mute = True), the LED will not illuminate on the MX392.

Here is what the screen should look like when you are finished (assuming a Vortex EF2241):

Make sure the LED works as designed. If you press the membrane switch, you should see the LED above the pins illuminate in Conference Composer as well as on every MX392. Since the switch is a membrane switch, the LED will stay lit until the switch is pushed and held down:

When the membrane switch is pushed and held down, the EF Device toggles the state from unmuted to muted. Now, the LED should not be illuminated since the input from the MX392 is now muted. Both LED's (Conference Composer and MX392) should not be illuminated and should remain unilluminated as long as the switch is held down on one of the microphones:

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Polycom MX392 manual