The schematics indicates that there should be a testpoint labeled NOISE. It starts at a high DC voltage and the more signal strenght that are applied the less the voltage should be, and be down to almost 0 with a fully saturated signal. If that doesn't work then the problem are between that point and the radio discriminator. Probably not enough audio signal to the squelch circuits if the voltage only goes up to 2volt or something as max.
If that NOISE voltage seems to move between its min and max values then it has to be a CPU problem as the signal goes directly thru a rresistor to the CPU, that then controls the audio mute and scanning. Did you try to read the programming from a PC, to be able to restore it afterwards, and then do a reset, 2-9-HOLD while powering on?
/Ubbe