Power supply capacitors
The vast majority of silicon regulators require both input and output capacitors.
The various types each have their own issues, but Sprague wet tantalums are likely to be in the mix somewhere given the years in which this was designed (Sprague is sadly no more). There could be any number of types (mylar was popular as it is dimensionally stable over temperature).
Without knowing the details, it seem this regulator is providing power to all the instruments and therefore as loads are switched in and out there will be thermal differentials. It is due to the load step response (along with loop stability) that output capacitors are required. I can't go into that any further without sending half the audience to sleep defining poles and zeros.
Note that electronic loads are not constant so there will be almost continuous output current variations; local capacitors should take care of that but anything within the loop bandwidth of the regulator should be taken care of by the regulator output capacitors.
Input capacitors are required under just about any circumstances I can imagine.
Given the time it was designed, it may well be a discrete design which means more components. More components = greater chance of failure.
Something else that can give issues is the internal reference voltage source - you cannot have an effective regulator without one.
Back in the day that would probably be a Zener (possibly a bandgap reference although they were not particularly common until about the late 80s) and such devices are just as susceptible to ageing as anything else electronic.
So there could be a number of different culprits.