the B switches on the 1088 aren't in the lamp or coin reject circuits.
C-2 is in the lamp circuit, C-4 if closed will cause coins to be rejected back out to the tray.
we are just talking about the insert coin lamp and coin reject now, right? The coin accepted light and winner paid light always work correctly?
given the enormous gap in C-4 in pic 2 of his first post, the only thing that makes sense if C-4 is closed is the black linkage is sticking. That should be visible by looking where the front end of the linkage is without removing the reels (after seeing where it should be peviously). You should also be able to push the end of the linkage and it moves toward the back easily and the spring pulls it to the front when you let go.
'course, if the entire main shaft is not returning to reset position and is holding the linkage back ...