W e have a brand new 2026 Valor 44V14 and the water heater stays in a fault condition on gas. Replaced a faulty (new) thermostat and cleaned/checked everything, still slow to light and faults. WTH?
This is what I would do. My first guess is flow, second is spark/sensor.
Purge all air by running your stove and furnace simultaneously. Shut off all of the tanks at the valve. leave them closed for at least two minutes. Open each valve 1/4 turn. After you have them both open 1/4 turn, slowly open both valves....not like exaggeratedly slow but just slow steady turns. This may reset the regulators and give you the right amount of flow.
You can check high demand flow, not accurately but for purposes of a general diagnostic, by turning on your furnace then creating a demand at the hot water heater. If it is worse under load, then you absolutely have a problem with one or more regulators, a changeover valve, a pigtail kink, manifold issue, etc. If you really want to DX to prove this is contributing to the fault, you need a low pressure manometer, maybe Home Depot or Lowes rents them (they're not inexpensive and I think that is where my buddy rented the one I used when DXing a LP issue in the past...could have been from SW Florida Gas too). I'm pretty sure they sell them at Lowes or HD. You need an 11 water column measurement but fact check me on that.
Check for kinks in the line.
Turn off the tanks and clean the manifold...if there is more than one clean them all.
Check alignment of the orifice to the burner. IF you clean the manifolds, purge all air after reassembling.
After you purge and reset regulators, force a high demand scenario by running all gas appliances, including the furnace. Try to light the hot water heater.
As
@KCAlis said, check your spark gap. But you also need to check your grounds (clean, snug, metal to metal) for the control board. while you are at it, check for cracked insulators (porcelain perhaps), dirt at the orifices, etc.
I don't know enough about the changeover valves yet to even suggest they can be bypassed, but if they can try doing that and see if it improves. That would be, in my novice changeover diagnostic estimations, a pretty good indicator that it is faulty if the fault state clears.
The systems are simple, on the ones. But there are a many elements to the systems that make troubleshooting a PITA. Sounds like a lot of time but this whole process, except for the manometer and cleaning manifolds, takes about 30 minutes.