I had the same issue with my 96 lt1. Basically, The other owner(not me) had both the factory alarm and an aftermarket PoS installed. both were enabled or disabled with the delco key fob. Made for some interesting parking lot adventures. Look under your dash for odd looking wires and zip ties. I also found motion sensors in the hatch area and under the hood. Yor factory alarm could also have a short somewhere. The actual aftermarket alarm unit was tucked way up in the dash .Seems to be where aftermarket stereo shops put em those days.
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'96 Z28 Vert M6 - UMI LCA's,UMI SFC's,BMR Panhard rod(soon to be UMI),UMI Short Shifter,Custom clutch, SLP CAI, SLP Strut Brace, Skip Shift Elim, MagnaFlow Catback,160 stat, Tb bypass, Air Foil ,prothane motor mounts & tranny mount, Stainless Radiator Shroud, Hooker headers with magnaflow hiflo cats, brand spanking new tranny, Umi torque arm , C5 brakes all 4 corners .
Soon to come... New paint , and glass .
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