It's definitely not a monitor issue. It looks like the character ROMs are bad or not reading correctly, or something in the logic related to character graphics is going bad. Maybe try reseating EPROMs 3P and 3N on the bottom PCB.
The high pitch sound may be bad sound ROMs, or the sound CPU not executing it's code correctly. (The walk and jump sounds do not rely on the sound CPU, so they will work even if the sound CPU is not.) Maybe try reseating EPROMs 3F and 3H on the top PCB. It may also be possible that these two chips were accidentally swapped with one another.. If the EPROMs still have their labels, they will be marked with 3F and 3H, and the silk screening on the PCB next to the sockets will also be marked 3F and 3H.