At 40 years, new sitting in some warehouse, some components like electrolytics, can go bad.
Are you receiving a beacon or AM station ?
Does the antenna rotate when you press the verify button ?
Any improvement if you raise the ADF whip ?
I'll presume from 'reverse engineering' you have some background with MF/VLF receivers, phase comparator circuits,
and the antenna servo circuits.
This is fairly old technology, if you are handy with an o-scope and volt meters, you shold be able to look through the different circuits.
Starting with power distribution.
A VLF/MF signal generator would be very handy