To confirm, when you manually push the reset relay, the machine goes through the complete reset process, all the score reels reset to zero, the ball kicks to the shooter lane, and it's ready to play the 1st ball?
When there are credits showing on the credit unit wheel, and you push the start/credit button, this will send power to the credit relay coil, which will close a switch that will send power to the coin relay coil. Then a coin relay switch will close and send power to the reset relay coil. So, this might be an issue with power getting to the credit relay unit coil. Try to manually push the credit relay and see if this will completely reset the machine.
Yes, the dual score motor switch 1E with the red/yellow wire should be open at the start of the game. The other side of the switch with the black/white wire should be closed at the start of the game.