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The indicator light is powered by the 6.3 volt filament winding...whether it is in or out of the circuit will not affect performance...however if there was a short at the bulb socket that will take down the filament power and could damage the power transformer. You need to go through the power circuit with a multimeter and confirm where you don't have voltage. Personally I wouldn't mess with a VTVM, I find a good digital multimeter easier to use.
The AVC varies the bias on the RF, converter and IF tubes to vary the gain. There is a delay factor on AVC where a filter capacitor stores voltage to allow for a relatively slow change in gain when the signal strength changes. AVC will not cause rapid variations in volume. The 6AV6 is the detector tube...it rectifies the radio signal, removing the carrier wave and leaving the audio variations. Also the rectified signal is fed to a filter system to provide the AVC voltage which varies w/ signal strength. Also the 6AV6 has a triode portion which is the first audio amp.
The variations in volume are most likely in the audio portion of the set.
Again don't go troubleshooting the problem till you replace those old caps, that way you can rule them out as a problem.
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