You have the return tube grounds routed through the loop jacks. This means the return circuit relies on the jacks and whatever length of your send/return cables for ground. Wire your return tubes directly to ground instead. Maybe that will help.
Thanks for the input Steve. This is odd I know. The reason I tried it this way was to see if it eliminated possible ground loops from pedal boards. So far this is early in testing and I do not have a conclusion on its success. Though for my current problem, it did not fix it
So heres some updated info. I tried the things mentioned by Tubenit and no success, but here is what I discovered. The FX loop has a bypass switch. Completely removes it from circuit. I have 10 Meg resistors across contacts to reduce popping when switching. First thing is first. With the FX Loop OFF and NO instrument plugged in I can make the amp start to squeal by turning gain and master all the way up and then turning the treble up will make the high pitch dog whistle begin. Heres what confuses me a little bit. If I adjust the send and return of the FX loop, it can adjust the high pitch squeal slightly. Its odd because at this point it is only connected to the circuit via ground and B+. So its getting introduced back in the FX loop somewhere. Again the FX loop is OFF at this point.
Another interesting thing is I put a vibrato pedal in the loop and if the send or return pots are all the way up it makes on hellish of a noise. Turn those pots down some and it goes away and is playable. Sounds nice even. Oh...I replaced the 500k pot with a 250k also. I thought OK this loop design sucks. I need a new loop, but wait a minute this exact loop is in the 50 watt amp I have also. So I plugged it in and installed vibrato. Works perfect. I cranked master, gain, all pots... and no noise.
With the amp in question (20 watt) I used a fender Princeton reverb power amp. I have 2.2k grid resistors on the OT tubes. Im wondering if increasing this will help? The 50 uses 5.6k since its a marshall style. Im also curious about the B+ nodes. The princeton has all 12ax7 on the same node. I dont have reverb or tremolo. I think the only ones I have on the same nodes are the first couple of gain stages. The cathode follower tone stack and the fx loop are separate, but heres how I did those. I did the "bicycle spoke" approach. Like on the AC30 where the B+ comes in and branches in different directions rather than in series. Would this matter?
Lastly, the cathodyne phase inverter only uses half the triode obviously. The other half is unused in this circuit. Should I ground the unused parts?