Have you done the biasing yet?
Bias was my thinking too but the Ampeg V4 doesn't have a bias pot so I temporarily installed one and I was not getting significant change as regards to the trailing distortion.
There is an Ext. Amp input/output on those so I plugged the V4 preamp into the return of a Peavey 5150 I had lying around in the shop. The nature of the distortion changed (more like a haze in the background (as if you had a mix control on a distortion pedal: clean signal on top a distorted one in the background) but I didn't find that test conclusive either, the ext-amp takes the signal before the second half of the 12DW7 and obviously before the PI.
I tried to play the entire V4 into one of my cabs to check if it's not the whole loadbox setup that messes up with the signal (hate working with so many parameters...) and then, plot twist, I got massive hum.
Checked the B+ on the plates of the 7027A, one pair was getting none, my fears were confirmed when I checked for continuity on the primary windings of this ORIGINAL MAGNAVOX AMPEG V4 OUTPUT TRANSFORMER
The output transformer is dead, which was to be expected considering how that amp was being run and it was a long time coming (can't say I didn't warn the guy).
Now my customer is going to put the repair on hold so he can gather himself (emotionally and financially) understandably.
Either it was the dying OPT that was the culprit all along or not, I'll have to wait to troubleshoot some more until he pulls the trigger on a new transformer somehow. To be continued!
Thanks @dogburn and @willabe for the pointers!