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IC5 never goes bad.


Well, only about two of them in my 40 years' experience with that part.


Close enough to never.


It's time to see what's feeding into IC5.  The inputs are both 'differential". Means that both pins on one input are "hot" with RF feeding in.


Pins 7 and 8 should have the 7.8 MHz carrier while transmitting in AM, nothing on receive.


Pins 11 and 13 should have the 34+ MHz PLL output all the time, transmit and receive.


If either of these is missing, the fault is upstream from IC5.


73