If you had a loose cable at the mic yes that might cause that mic to drop out, but it would move when you swap, and it wouldn't describe the flakeyness in adjusting the other channel.
UA-5's are designed to run off 9V. Using a 7.5V battery means you are providing less than that, and maybe it drops off a little after it runs a while... at which point it starts to get flakey? I don't know for sure, but that's where I would start. Buy a 9V DVD player battery which are readily available, and sell your 7.5 to someone with some other device (like a V3 or MR1 which will happily run on 6V+)