I also apologize for being numbskullish but I am having a hard time deciphering the use of higher and lower threshold in what you’ve written. Is it possible that we are using the terms in opposite manners?
I don’t have a “ratio” knob as such so I don’t know when it’s at 1:1
That's what you're failing to understand. You have a knob labeled threshold, but it's really ratio. Each ratio setting has a different threshold. It's one in the same. You affect threshold for a given ratio by changing the input level knob.
if I pull the threshold all the way up (“up” meaning it is not going to compress because the threshold is above the audio level)
all the way DOWN is also little/no compression, if the modification truly takes the bias voltage
all the way down to 0 volts.
(modified) threshold all the way down = 1ish:1 = little/no compression.
threshold slightly up from there = >1:1 ratio = slight compression at a very low threshold. 1.6:1 mentioned in manual as lowest practical ratio (and threshold).
threshold all the way up = 3.3:1 ratio.
Pull the 6AL5 out. You don't have to turn it off to do this.
Turn the threshold/ratio all the way down.
Put program material through the compressor, set it for the highest clean input level, and whatever output level you want.
Put the 6AL5 back in, what happens?
With slight compression from a low threshold/ratio and a high enough input level, transients will still surpass max level and distort. With highest threshold/ratio, it may actually seem cleaner (tube comps usually do) because the higher ratio actually does something effective to keep transients away from max level.
If it were me, I'd inspect the entire circuit and confirm every modification that's been made, or what part is stock. Without that, it's all guesswork. There is easily a botched modification causing the problem.
If it compresses faster, it means the timing network has been changed. If it's faster attack (like a limiter) and fast release (for, you know, modern!) distortion WILL be much higher. A fast enough release keeps the timing caps from ever charging up, it's practically like raising the threshold even further, erasing space between the threshold and max level.