Some thoughts:
1) This radio apparently has some "aviation mode" (Page 5-5, section 5.3.3) which invokes some wacky tuning scheme where your display and the receiver operating frequency intentionall disagree. I would recommend monitoring the LO by tapping it with a frequency counter and taking note of the LO when transitioning from a Pass to a Fail frequency. Try tuning to the side of a failed channel either up or down to see if the Fail becomes a Pass.
2) The preselector of the receiver uses Varactor tuning. If the tuning voltages are wrong then the receiver will have poor sensitivity.
3) Monitor Varactor tuning voltage when transitioning from a Pass to a Fail frequency. If the channels are adjacent, there should be little variation.
4) Without a detailed schematic it is near impossible to see how the radio really "is supposed to work". I would suggest that it could be a power supply voltage problem where the varactor tuned preselector circuits are getting wrong or unstable reference voltages. It could be some D/A convertor that takes digital channel or factory tuning data to set the Varactor voltage. It could also be a broken or corrupted data transfer between the main processor and the Preselector module.
5) If you haven't already done so, inspect for physical damage to the internal wireing and connections. Disconnect and reseat the connectors and use some CRC or De-Oxit electronic connector cleaner.
A better more concise manual at SCRIBD link below:
The document is a user's manual for the General Dynamics VHF URC-200 Transceiver, detailing its operational and maintenance procedures. It includes sections on product requirements, installation, operation, and system maintenance, along with customer support information. The manual also outlines...
www.scribd.com