Never assume a diode "works" if all the other switches in a game function, including direct interface coin door switches or associated control boards both in the game (dependent on manufacturer) or the MPU itself in some case, not just the playfield.
Diodes can short OPEN, as well as CLOSED, and still be the source of the problem not the microswitch.
Your diode BTW is WAY TOO CLOSE to your center switch lug and wire, as shown in the photo of the jumper wire.
This can cause a temporary switch short in itself, due to assembly vibration while playing.
Sometimes just "wiggling" a diode, can cause the switch to magically come back to life.
This is caused by a colder solder connection, buildup of flux, broken continuity of a wire, or even a wire short.
Test it properly, by cutting off a lead, and using a multimeter, although this is still cannot always be 100% reliable.
If it is bad, cut it out, temporary bend leads of a new diode, or clip it on the microswitch, and test the switch again.
You already figured out how to jumper the switch.
Make sure you do not see switch matrix "blips" of other switches at the same time, as there can be phantom switch closures, the only one that should ever light up, is the switch you are jumper testing (there are a few exceptions such as ball troughs and optos, but that is a different subject area). This is caused by other problems, other switches, and may not even be related.