Update:
I set up the channel to use the M8 servo channel with the 3 position tilt switch( -100% 0 100%).
Took the drone apart, connected a servo straight to the M8(A8), nothing happened.
I connected an oscilloscope to see that I have one grounding wire, one constant 5V wire and one pwm (attached).
My problem so far, is that no matter how I flick the switch, the pwm doesn't seem to change. I tried also the M7(A7) and M4(A4) that uses the tilt potentiometer but the signal is exactly the same.
I also tried it with the rotors connected, because I was getting a red blinking but it made no difference.