Likely bad optos.
Honestly, instead of trying to fix it, grab a new one (Inigo's, I believe, is the best, though I personally don't have one yet.).
In the test, it should show all minutes activated while moving as the hand passes each opto, and the four hour optos should reflect the location of the hour hand (see manual for the opto states..)
If all hour optos are bad, it could be a bad connection between boards - try checking that.