Okay solved this one (well pretty much!)...
The input selector switch does actually include a muting function, and ironically that's what is causing the problem. Part of the switch (SV01-1) links pins 4/5 (and sometimes 3) momentarily as the selector is moved between click stops. Exact operation is a little vague in the schematic, but essentially when this happens, the voltage on pin 4 drops, subsequently turning QM03 off, which turns QM04 on, which thus grounds voltage on JM04, causing current to flow from pin 14 on each of the ICs Q701 Q702, activating the muting function. The 26V on JM04 / pin 14 is supplied by the IC, hence current flows 'from' not 'too' the chip.
CM03 provides a short start up delay at switch on, R754/755 act as current limiters (trigger current is only around 0.2mA, must not exceed 1mA), and I imagine QM02 allows the muting circuit to be activated by other factors such as thermal / electronic overload (?)
If you remove RM07 the switch muting will be disabled, and this actually helps, leaving (in my case) only a pop switching to AM radio, which is now a result of the AM circuitry being activated, and would be the pop that the muting circuit is designed to mute!
Best I can tell, the pop is caused by the muting circuit activating too 'suddenly' - ie QM04 flicking like a switch. CM02 seems to provide a brief delay to 'soften' the switching (observed on QM03 base) however collector voltage still rises suddenly. At this point I can't say where / why the fault occurs, however adding a 22uF capacitor between QM03 collector and ground slows the rise slightly and therefore activates the mute without causing a pop.
I did replace the existing electrolytics in the circuit, and although CM03 was pretty dried up, the new caps made no difference to the actual operation.
The compromise is the mute now activates a little slow, and if you flick the switch from FM to AM quickly you will beat it and hear a pop. If you go slower, you won't. Also if you are switching across from phono or aux the muting will trigger before you reach AM and then also no pop

I did try a 10uF but this seemed too quick and still popped.
I gotta call this solution 'good enough' - I get a bit pedantic about making stuff work properly, but there's only so much time I want to put in to the beast!