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That cap looks a little too big to be a 0.022 but usually those were 0.1uF. If so, then with a 1.2uH coil (7 turns 0.8 inch diameter and half inch long), it could resonate at the IF frequency. Assuming the presence of the guts of the cap inside the coil doesn't effect the inductance.
I sometimes just left it alone, as leakage in the cap in this spot in the circuit is of little consequence. Especially when there is a 120K resistor in parallel anyway.
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