I didn’t found any problem in you schema, wires should be OK.
But I noticed a green pcb underneath your lcd screen, what’s that? It’s possible that some layout on that “redefined” the logic?
As to the panic screen, it re-init the screen before showing the error, but as far as I know the init procession is almost same with normal game screen. As I said before the blue pcb 7735 screen not very compatible with MCA, sometime it need init twice. So maybe the panic screen worked just because it after the “2nd init”.