Make SURE nothing is inadvertently connected to the FM DET OUT jack and pulling the signal down.
to test:
On the back panel, connect a cable between FM DET OUT and the right channel tape 2 play.
Have it play FM stereo, then cut in tape loop 2 to switch to right channel only playing the raw FM signal.
See if that is louder.
That signal goes DIRECTLY to the FM stereo decoder chip.
The fm stereo decoder chip's outputs of L & R go through a low pass filter
and then through a muting circuit VERY similar to a protect type action
BUT it uses transistors.
Most failures would affect one channel and not the other.
A muting circuit Q12 problem would affect both channel's muting transistors (Q10, Q11) equally
a quick and dirty test / fix would be to remove the muting transistors (Q10, Q11).'
Just make sure that any extra transistor leads below the cuts are NOT touching anything.
edit C57 in the Q12 circuitry is a 0.1uf 25v CSSA cap - one of the dreaded sky blue sanyo caps that fail into resistors. In this circuit it could bias q12 instead of acting as a time delay. If that cap is clipped the time delay is eliminated, but I'm NOT sure if that would fail the mute on or off permanently - I expect failed off mute (thus allowing FM sound) but I wouldn't bet ANYTHING on it. If it failed permanently muted, removing q10 and q11 would get the sound back. Don't cut any wires with power on, and wait a few minutes after power is turned off.
Of course you can just replace C57 if so equipped.