The knob circled in blue is the charger timer. Its a pretty common thing for older RC battery chargers.
The meter does nothing until you crank that timer, either for charge or discharge.
The instructions talk about trickle charging, but I don't think that happens with this charger, due to the meter not registering anything w/ the timer not on.
It does seem like it should be working, but the meter does not register anything in charge mode (only discharge), nor does the charger get hot or the batteries.
I just charged the 2 batteries, plus the new battery that came w/ the 5 hour charger, with the new charger.
So, no battery problems.
The red arrow points to the battery connection.
And, yes... you have the blue arrows pointing to the charge/discharge switch and the amperage adjustment knob. Normally, cranking the amp knob higher (in charge mode) would make the charge rate go up. It no longer produces this result.
Yes, I do have the instructions.