Chosen Solution
The MacBook running newest MacOS Catalina won´t sleep when i close the screen/lid. Tried reseting SMC and PRAM, also tried running a magnet along all edges with no effect. Running on original Apple SSD. Wondering where the hall effect sensor is located on this model? Is it part of the I/O board as I’m suspecting this is faulty and needs replacing? Could re-installing MacOS Catalina help? If I manually enter sleep and close the lid it´ll sometimes react once closed and wake up, this is the only scenario in which I seemingly am able to get a reaction from the lid sensor.
Apple loves moving things about! This series Hall sensor is located on the main logic board on the back side as you can see here:
Pop the logic board out and inspect it for corrosion MacBook Air 11" Early 2014 Logic Board Replacement if you see anything take a nice sharp picture and post it here for us to see Adding images to an existing question