That
might happen in case of measurable high value resistance existence between IN or OUT jack tip and GND..
(voltage dividing effect..)
It should be a good idea to take a resistance measurment between IN or OUT tip (it doesn't matter which of them, as long as they exhibit perfect short when signal bypassed) and GND..
(try it on various ground points - although Ground is Ground is Ground

- like on metal enclosure, DC jack ground, PCB ground & Battery negative pole..)
Or better, wire OUT jack sleeve (the one with green wire going to PCB) on IN jack sleeve (the one with black wire going to DC jack ground) and try it without any measurement..