Not crazy, if the balls do not get loaded in the correct order, the machine will continue to try and stage 3 balls.
With a diverter not working, it can't position the balls correctly.
To verify, you don't have a optic problem take all balls out of the game, drop a ball down each (3) kickouts.
put the last 3 back in the trough.
Turn on game, It should be set and not cycle.