That is interesting circuit, fixed-bias and cathode connected to the secondary side of the OT.
So if I'm not mistaken it has two negative feedback loops??
2 negative feedback loops, one of which is the 32Ω secondary tap. But not "fixed bias" but "back-biased".
All of the main filter caps are connected to the 0v ground of the rest of the circuit. But the high voltage winding CT is not grounded, it is connected on the far side of the 300Ω resistor also connected to the filter cap grounds. The current of the entire amp flows through that resistor, creating a voltage drop which makes the CT appear "negative relative to ground" ("ground" being the filter cap - terminals). A dropping/isolation resistor and a bias cap complete the back-bias supply.
This schematic is also an example of using series resistors between the PT winding & rectifier plates to keep current within the rectifier's rating, in spite of the large 1st filter cap (and an example of why I always say data sheets never have a "max filter cap" value).
Yeah strange! I was thinking, maybe if you disconnected the NFB the breakup might improve but might disable the crazy tone stack. ...
There are 2 pick-off points for feedback: the 32Ω tap to the 6V6 cathode, and the 8Ω tap for the tone controls. I'd first try unhooking the 32Ω tap, connecting the 6V6 cathode to ground and seeing how it sounds.
... Volume pot before the first gain stage ...
They appeared to expect a pretty hot input signal from the mono input. There is a voltage divider which knocks signal down by 2/3 from that input, before it ever gets to the Volume control. The Volume control will knock it down further, which is not good for signal-to-noise unless the input signal is quite hot to begin with.
The problem is the clever tone controls are enabled by the feedback loop from the 8Ω tap, and that loop is returned to the 1st 12AX7 stage's cathode. You can't move the Volume control to the typical place after that stage, because then it's inside the loop. It would probably react oddly with the feedback & tone controls when adjusted.
If you friend agrees to lose the tone controls, then the other suggestions about Champ-like wiring are available for use. Do leave the 6V6 cathode connected to ground, keep the back-biasing & resistors from PT to rectifier, use a typical Fender input circuit (even if just a single jack) and move the Volume control to its typical position between 12AX7 stages. After that, he can evaluate how it sounds & whether either of the cathode bypass caps are needed.
A Treble control (sans feedback) can be implemented using a 0.1-0.5µF cap as a cathode bypass, but with a pot wired as a rheostat between the cap & ground. Turn up for less resistance, and gain for trebles is boosted. When turned down for more resistance, the cap is decoupled from ground, allowing local negative feedback to reduce that treble-gain.
A Bass control can be implemented by placing an extra coupling cap (maybe 0.01-0.022µF) in series with the existing 0.047µF coupling cap between 12AX7 sections. Place a pot wired as a rheostat across the new cap. When the pot is turned up for less resistance, the new coupling cap is taken out of circuit for stock bass. When turned down, the series cap is brought into play, reducing the total effective capacitance to a value less than the added, smaller cap. Bass is trimmed.