Posting an update. So I received some atmegas from China which look like fakes. One of them does not have a circle near pin 1 which is really suspect. Anyhow, ordered one locally from RS Components in the UK, which was pretty reasonable and had free shipping (if I had known that I would have ordered from them). This flashes fine using a USBASP (with the latest firmware); you need to use -B 5 for the slower rate comms with avrdude. I will try the Chinese atmegas with a crystal at some point just to confirm they are fake; if they do work they are not new from Atmel/Microchip! As I was testing the fake atmegas, I used a break out board and just soldered pins 1 thru to 6 to allow the ISP flashing. A nice diagram here
https://www.kanda.com/avr-isp-circuits.html of what is required (need a 100nF capacitor and a 10k resistor on the board). Once I flashed the Rs Components atmega I then undersoldered it from the breakout board and onto TC1. Low and behold we have a working TC1.
So to summarize, SV05 had a short pulling the 5V line down; replaced that. Still had a short, but not as bad. I then had the issue as shown in the photo by Bighouse, although my issue was with pins 1 and 2. Lifted pin 27 (AVCC) of the atmega off the board and short gone. Replaced both of these components. Thus I would say if you have the issue as shown with Bighouse you might need a new atmega. Used indman's LCR-TC1 original firmware on yadi.sk (date 9/16/2019).
Hope my hard earned effort helps someone! Was pulling my hair out with the fake atmegas!
Attached a photo of the breakout board patched into a 6 to 10 pin ISP adapter. 10k resistor on the top and 100nF capacitor is a smd soldered on the bottom of the board.