Update: Swapped a working 60-in-1 into the MK4 cab and the red dotted line is not present. It is probably the result of of the "Wave RAM 1 error" here is what I could dig up on what the Wave RAM does on Midway's ZEUS hardware:
"The Zeus chip provides access to some local RAM called "Wave RAM" in the diagnostic tests. There are two banks of Wave RAM, 8MB each, for a total of 16MB of 3D graphics RAM. Wave RAM holds the frame buffers, textures, model data, palettes, and other tables used by the Zeus." - MAMEDev Wiki
The U63 chip is surface mounted and I can't see any defects in the pins or traces. I ordered a UMK3 board to put in there, and I will break out the magnifying glass on the defective board during the swap. I did notice however there was a tiny pin hole on the solder side, underneath this particular U63 chip is located. I might try to reflow this solder and see what happens. Thanks again for all your help guys.