Hi all. Sorry for my late reply. Life gets in the way of hobbies 🙁
vetz - I modified your technique - I would lift one side of the motherboard while there were some screws left in the case. This would cause the mobo to bend slightly. I did this in all four corners but it didn't help.
rasz - I can't get the CPU out and I'm afraid to try. It's in a weird socket and I'd need some kind of tool to press in those 4 bumpers at the same time I think to release the chip. Other than that, I did deoxit the sockets including the SIMM sockets. I did try the RAM only in the second bank but that did not work. The manual indicates this is not a valid RAM configuration. I did try three different sets of RAM and all had the same issue.
I'm not disregarding your notion that it is a mechanical problem, don't get me wrong. I took the motherboard completely out of the case again and gave it a good look. If something is wrong it's very hard to spot. Given that, I thought maybe the next thing I could do was to use my oscilloscope and probe the pins on the SIMM socket. I figured that if there was a broken trace for example, or a broken component, maybe the scope would show me some strange readings on the pins. The problem with my idea is that I have no idea what I'm really looking for in terms of a waveform. I will share a link to some pictures I took while using my scope on the first RAM socket. By the time I got to pin 29 (a day or so after the rest of the pictures were taken) I realized that perhaps I had the time set too low and I couldn't see the whole waveform. That is why the pic of pin 29 looks different than the rest. That one look different than all the rest even taking into the account the timebase thing I mentioned. I don't suppose you know if that looks normal for data parity in on a 30 pin SIMM?
Is my approach narrowing down the mechanical issue sound? Flawed?
Rather than sharing all those pics of waveforms in this post, I'll just link to the album on imgur below.
https://imgur.com/a/wKTM8bg
P.S - I am almost done scanning the manual for my Z386SX. Only a dozen ish pages left to go!