The LM7905 voltage regulator was initially not outputting when configured in high current mode due to incorrect circuit connections, including a backwards transistor and improperly oriented capacitors. After making corrections and replacing the damaged 7905, initial tests indicate that the circuit is now functioning properly. The load connected was 100 ohms, drawing 50mA. The user plans to share results once the project is completed. The discussion highlights the importance of proper circuit design and troubleshooting in electronics projects.