The little bar controls the coin lockout feature to the coin mechs. When the power is off, the coin lockout feature will divert coins to the coin return tray if coins are inserted in the coin slots. If the power is on, then coins will be allowed to drop on the coin switches to start a game or add credits. It sounds like one of the parts on the coin lock out feature is interfering with the coin switches. Pull the coin mechs to see if there are any stuck coins in the mechs, bent rods related to the coin lockout mechanism, or bent coin switch wires.
The coin lockout coil on the door is a continuous use coil that is always on when the machine is powered on. It only regulates coins that can be accepted if the machine is on or off. For troubleshooting problems with the machine, it doesn't matter if the coin lockout coil if connected or not. If you plan not to use coins when playing the machine, you can just disconnect one of the wires from the coil...