I noticed that the jumper that is sitting between the PAL logic chips is not set. On the various pictures on Amiga Resource, that jumper is bridging the two lower pins of the three pin header. I do not know what that does. Proceed with caution.
Also, there is another jumper close to the bottom rear (not middle rear -> segmentation select) that determines composite sync vs. h/v sync. The manual suggests (in the BNC/VGA cable section) to move that jumper to open or closed and see which position works. I would expect for this jumper to affect the Picasso video output, not the Amiga video pass through.
I'd try the bottom rear jumper first. If that doesn't help, then try setting the jumper to the lower two pins of the three pin header. Keep a hand on the power supply to turn it off quickly, just in case.
Hopefully one of those will solve the problem. If not, please send the card to me (as discussed with Eric). No charge and I'll send it back (hopefully fixed, but also if I can't fix the issue).