Just want to verify that it’s time for the knife…

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Touchy HT Volume Knob Winlink & VARA FM - How to Fix?

Yes, but the the change is not permanent: You can bridge the attenuator pads with the solder blob if you wish to remove it. Also, even with attenuation the interface will still work with other radios, though the audio levels will have to be adjusted accordingly. The attenuator would not work on the USB line because it is not an analog connection.