Very Strange HARD RESET issue

I've been tasked with repairing this Saturn which was trashed. I cleaned it, changed all caps, replaced A/V port, and now it turns on and even plays fine with a Saroo. Which is sort of a miracle

However, there is a strange issue with the Hard Reset function. It just doesnt work at all. Pressing the button (which is new) does nothing.

Testing continuity, when I press the button and following traces, everything seems fine.

On the pic I've marked the 2 pins that get shorted when pressing the button, Blue is GND and Red I believe is V. Is this how it's supposed to work? Could that chip be defective?
Screenshot_16.jpg


Thanks for your help!
 
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