Ah, you let out the magic smoke! :D
Occupational hazard, I'm afraid.
Definitely replace the PPI socket. It is clear there's a bad connection there. I had the same thing with my CPU socket; it's worn out and only works with the uIDE Z80 shim installed. Check the other sockets too.
For the PSU upgrade, buy a Meanwell 12v power supply. Meanwell = "good quality brand", if it is genuine. Don't use generic cheapo PSUs from China because they have a habit of blowing up. Connect the Meanwell PSU to the disk drives' 12v line, disconnecting it from the Intertec PSU, and connect the Meanwell -ve line to the ground on the Intertec PSU.
This takes a lot of load off the marginal Intertec PSU and since fitting one to my machine I have had zero problems. I actually did mine to resolve screen picture glitches each time a floppy was accessed, as I'd implemented the driver motor control mod so each time a motor started there was a bit too much current drawn, which upset the monitor.
Anyway, speaking of uIDE..
Take 2:
https://youtu.be/y-gY0S2aVvs
..and, because things never go as planned..
Take 3:
https://youtu.be/hBrnUB8LXkE
:D