the 1st player buttons dont work, none of the servosticks work and none of the start, coin of both players work
Your pictures show that the daisy-chain ground is on the Common (COM) tab of each microswitch. -- Looks good.
Are the input wires on the Normally Open (NO) tab of each microswitch? -- Can't tell from the pictures.
If each input wire is on the NO tab, you might have a continuity problem with your daisy-chain ground.
Power down the computer/I-Pac (unless you want to fry your multimeter), set your multimeter to either Ohms or continuity, and check if there is continuity (<2 ohms or a "beep") between the daisy-chain ground on one of the working P2 buttons and the daisy-chain ground on one of the non-working P1 buttons.
If there is continuity between the two daisy-chains, the problem is probably with the input wire connections to the Ultimate I/O board.
Also, you should
strongly consider rerouting the brown wire in the first picture so it is clear of the shaft, actuator and restrictor plate.
Scott