Well, a complete refund has been offered. Seller will also pay return expenses, so he is OK-ish.
Now, before effectively returning it, I would like to check output levels. If all the problem is bad gears, device would remain here. I see contacts on this military version are riveted into some kind of board. I like it, puts out one of the most mentioned source of problems on this device. Please see first attachment.
From civilian version manual, it seems that output level should be read on the meter, on two different scales (0-3 and 0-10) and also different units. Both the scale to read from and units to be employed would depend on the range selected on the knob. If max output level is +19 dBm/2Vrms, that would explain why the meter goes to 2 in the 0-3 scale when the knob is in the 20 dBm/3Vrms range. Then perhaps it should go to the top of the 0-10 scale when the knob is on the 10 dBm/1Vrms range. Which is what happens, please see videos linked on OP. Am I getting this right?
Alas, the procedures mentioned in the civilian version manual to check output levels require quite a bunch of equipment that is not here. All I have at this moment is a 100 MHz BW oscilloscope. N-to-BNC adapter is on the way. I'm reading output levels with oscilloscope probe on the pin of N connector. TinySA + some attenuator could be purchased. Any suggestions would be greatly apreciated.
Frequency readings on 8640B's counter and oscilloscope almost exactly agree up to where scope is able to reach (about 325 MHz). Sine wave looks good except in the 32-64 MHz where I see it distorted. Please see second attachment. Any thougts?