I wasn't going to challenge you on the buttons you pushed on your scope George... :-)
Don't worry, when things just don't make sense, check your setup.
You can DC couple them for testing to find out where your mod went wrong. Tack a jumper first across C21 (the 2.2uF cap), check results.
Did it fix it?
much better design work, PL really cheaped out and wanted to do everything in one quad op amp instead of adding a buffer stage earlier on to isolate the effects of the volume and balance controls.
That is a great update Perry, you have been busy, as usual. I hear you about too little time...seems every year it gets worse. Us seniors are supposed to be dialing it back but it never seems that way.