CJ's questions are good observational points, since the schematic logic doesn't indicate a distinction among the drop targets.
Basically, hitting any of the eight drop targets should close their corresponding switch as they drop, and activate the G relay via a normally closed switch at score motor position 1C.
Then G should stay locked on via a switch that closes on its own switch stack until a switch opens at score motor position 2B.
Now, while G is active and has its switches closed, it causes the score motor to run. This in turn pulses close a switch at score motor position 1A five times. Each time the switch at 1A closes, if the target is still worth only 500 (and not 10x), then it goes through a closed switch on U, another switch that's closed on G to reach and activate the 100 pt relay, M. A switch closing on M then activates the Add 100 point stepper. Since the switch at 1A is pulsed five times, 500 points are scored.
However, there's nothing in the logic that would discriminate among the eight drop targets; they all feed G equally, with no intervening switches.
So, perhaps when the playfield dropped, the lower target banks have somehow gotten disrupted?