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The FM ratio detector circuit was initially not producing an audio signal due to a lack of connection between the AUDIO OUT line and the audio side of the detector. Troubleshooting revealed that the transformer values were incorrect, and adjustments were made to ensure both the primary and secondary resonant circuits were tuned to the same frequency. After changing the value of the IF transformer as suggested, the circuit began to work properly. A user also inquired about proper capacitor connections for their own circuit issue. The discussion emphasized the importance of correct component values and connections for successful circuit operation.