It is informing you that either:
* The POST is not starting, or
* The POST is starting, but not getting as far as step 13.
Yes, but that will not inform you of what caused the halt, or when the halt occurred.
The "extra cables" on your 'upgraded' 256-640KB board will be IBM's rewiring to accommodate 27256 type ROM's. Some photos in links at the bottom of [here].
The 05/09/86 BIOS on a 64-256KB motherboard should, at the least, start and display something. I will put the 05/09/86 BIOS into my 64-256KB motherboard, and report back.
At power-on time, PB7 will be an input. Per step 5 of [here], the POST configures the pin as an output. So your measurement indicates that if (and if) the POST is running, it is not getting as far as step 5.
The manual for your logic probe will tell you what it displays for different things.
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