This circuit board has pin 2 left floating for a "default high" as far as I can tell by the data sheet.
I'm not sure the diode is for PWM in this case. But I dont know.
The IC boosts the volage up. If the diode fails open. (broken wire or LED not soldered well) The voltage will get very very high. The output capacitors may fail. The supply diode may fail and the IC probably will fail. The simple answer is to add a Zener diode that, under overvoltage conditions, will pull up on the FB pin.
The circuit will work just fine without the Zener diode.