The answer is the headlights turn on normally, but only from the perspective of

someone inside the spaceship. For someone standing outside watching the ship fly
by, the headlights do not appear to turn on: light comes out but it's traveling at the
same speed of the spaceship.

These contradictory versions arise because rulers and clocks — the things that
mark time and space — are not the same for different observers. If the speed of
light is to be held constant as Einstein said, then time and space cannot be
absolute; they must be subjective.

For instance, a 100-foot-long spaceship traveling at 99.99% the speed of light will
appear one foot long to a stationary observer, but it will remain its normal length
for those onboard.