Seen this on other games in the past switch doesn't register either because switch is out of adjustment, Switch is loose on mounting plate allowing it to move the body and not activate the switch. Sometimes switch is beat down enough it's best to replace it. You may have to bend/tweak switch arm so it sticks out more.
Suggestion i have if new switch doesn't do it test between one leg of switch and end of header connector where wire goes to main board. It is possible that there is a intermittent connection in line/harness to the board for switch matrix.
The header connectors on the Data east machines seem to be an issue but after 30 years of pulling and pushing i suspect most headers are subject to problems with this abuse.
Looks to be switch #29 in question white-green row 5 cn10 cpu board pin #5 then column 4 Green-yellow cn8 cpu board pin 4