Exactly.If the receiver is basically working, except for the narrow FM mode, it is unlikely replacing 54 capacitors will get you success.
I would suggest that the problem is an IF crystal like the two cans on the left with orange dots or the blue plastic cubes. Having the schematic and board layout would help identify which of these are for NFM vs WFM. Then the troubleshooting becomes easy. Get a disc capacitor like .05 uF or so, cut the leads to about 1/4 inch and glue it to a plastic stick. Then short out the outer leads of the IF crystals or ungrounded leads of the square filters and see if the squelch circuit suddenly behaves. Then solder the cap in that spot and test the radio. You will still need a replacement crystal to get proper bandwidth, but those are readily available. The problem could be elswhere in the logic that switches the IF chain, but more likley the crystal wore out or broke from the radio being dropped.
Basically what I mentioned in my first post about possible causes of the OPS symptoms given.
I used to break those plastic cased oscillators all the time in remote controls. They mostly used 455 kHz for remote controls so I always kept several of them in a part bin drawer. When a TV remote stopped working but had new batteries, it was almost a given that the oscillator had broken.