I would suspect the cooling coils have leaked the freon and aren't cooling enough to condense the humidity into water. These units aren't really made to repair unless it's a switch or humidity sensor. The cost to have the leak fixed and freon reloaded would exceed just buying a new unit.
First I'm not a Kenmore Tech.
* Check your warranty and call for service.
*** The following is for information only ***
* I had one of these dehumidifier. I've used both the drain bucket by itself and well as the hose attachment.
* the bucket has a hose cap at the bottom to allow a typical garden hose to be attached. Remove the cap and attach the hose.
* If you want to use just the bucket then you will need to remove the garden hose and re-cap the bucket. Otherwise the water will just drain on the floor. You can find a replacement cap at any hardware or garden shop.
* There is a sensor switch under the drain bucket. This senses if there is a bucket present and it will turn off the unit once it's full of water.
*** The bucket must be present for this dehumidifier to work ***
* You must place the bucket in the right position for the unit to come on. The attached hose must move freely up and down to prevent the bucket from being weighed down and turning off the unit as it thinks the bucket is full. Lifting the hose a bit up and down will give you an idea if it's too heavy.
* Final; there is an adjustment knob in the front to determine how dry the air you want. I've used this unit to dry out wet carpets in a room so it's set at max and usually takes about 1-2 days to dry out a room (in Hawaii with 60% humidity). You will need to set this up and adjust it for your purpose.
The problem is, your trying to raise the humidity level, not lowering. These work in reverse of what you may think. Lower the level (Arrow Down) to 32% and it will continue to run, but will draw more humidity out of the air and will not stop until the water collection bucket is full or the humidity level reaches 32% or you turn it OFF.
When you pushed the Arrow Up Button, it was already on 70%, that's as high as it will go. But that means, you're trying to maintain a 70% humidity level. If it's Summer where you are, I don't think that's what you want.