Your 8 pin is mis-arranged for the socket of your Mobo, this happens sometimes, you can verify this by looking in the header pinouts in the motherboard manual and comparing it to the header pin-outs written on the front panel switch. This is why your reset button is on, your mobo is sending electricity to your reset light instead of your power button as they are misaligned
The solution is somewhat simple and safe, but not for the faint of heart. Take a craft knife and cut between the two leftmost rows of the case connector, then rotate them 90 degrees.
You must have a old or rare case, most new cases come with them already separated for this very reason.