U117 is switching in either the internal or external signal to the freq. counter. So on EXT it will naturally pickup noise and not read the generator signal, aside from using the timebase.
I think EXT selects the analog front end (JFET Q108, Q109, U116 etc.) to U117A. I would check signal and DC voltages in that subcircuit if it is not working. Check C136 47uF has the right polarity, if the JFET pre-amp has failed it might go reverse.
J115 not sure where it goes but must be to EXT BNC.