The question is whether the fault is with Paula reading the right mouse button or with the adaptor. Paula reads it as an analogue value rather than digital so a low voltage isn't good enough, has to be ground.
If it's reading as high all the time, then it's most likely the adapter. A fix for programming the ATMel controller to make them OK with A1200 rev 2 was put up last July. But that wouldn't help with a "always high" reading.
https://github.com/simoninns/SmallyMouse2/issues/6The gitowner didn't pay much attwntion notice the issue.
Yes, get it recapped. There's a link to a pic included to check for one problematic cap in this case. Also, see if the hack "fixrightmb" is being executed in your Workbench startup, perversely that can make it NOT work on Workbench, (Unlikely though).