No external speaker, I have ferrite on the power wire and mic cable. Like I said, this is the only radio that does it and nothing changes but the radio when I swap. I'm wondering if it's a weak cap in the squelch circuit.
You're close...
In fact there may be one used to "silence" the "scratchy noise" from the pot on the front panel...
If the Faceplate has been pulled, this opens the ground loop / shield that the radio originally had.
This may not be from you - it may be from the shop verifying it works before they sent it to you.
Anyone that disassembled the radio - if you don't put it back exactly the same way...you get the potential for a noisy spot on the front panel ripe for noise.
So let/s take a look at the 959 - and hope like hell you have similar...
Q44 is your SQ amp - the one that actually silences your Audio RX line. So noise injection here, would come from RX which it doesn't seem to - only when it ON - so you'll need to take a look at J5 on your board, it handles the GNF and SQ knob. Be sure it's seated
The noise that can still inject AFTERWARDS, is from your Talkback - that can come from open removed limiter, or poor loose connection to the Talkback pot which goes to a centralized connector by your Audio Amp...
Another look...
Ok, it's a 949 -
But it's the best DIRECT example I can give you
So potential INJECTION noise sources are AFTER Squelch in the line - so the main culprit seems to be Talkback - the last stop on the line to the audio amp...
Why do I say Talkback?
Well, your SQ function is working, but looking at the schematic, you have a resistor then the INJECTION point for Talkback audio. So I'd suspect the Talkback area, and any knobs or switches involved in the Front panel that any parts and headers have been molested.
The problem is the noise level, is due to how all the pieces that give you your features' - are installed in a hierarchy in step with the line starting back at the VOLUME control - SQ-uelch, TB (Talkback) so your last line, is the most suspected to be the one causing you the grief. That being Talkback.
Best way to check, pull the header from the TALKBACK (purple arrow) Noise gone? There's your source for the noise.