Well, that’s a new one on me - and I thought I knew pretty much all the wrinkles of the S2 alarm system
The S2 came from the factory with an alarm fob integral in the main key, and a separate rectangular fob, both of which can be used to arm/disarm. Do you have both? And does neither of them operate the alarm / central locking?
I suspect (although I’ve no hard evidence) that the alarm control unit has ‘forgotten’ the unique code number from the fob. There is a way of reprogramming this IF you know the original code number - but it doesn’t always work. Sad to say, I fear your only solution may be to strip out the OEM alarm and replace it - that’s what I had to do.
I have a write-up on how to do this, but I don’t publish it on the open forum for obvious reasons. (Pinky also has a copy in case I go under a bus

). If you email me at my forum address, I’ll be happy to send it across, but be warned: replacement is quite a major undertaking.