Seems, you could not fully understand the block diagram.I don't understand your schematic.
You've got these two boxes that just say,"Latch circuit for ...." What is in those? The top line that comes out of the right side of each of those boxes, what is it? Is the coil in the green box the relay coil for the switches that are also in green boxes? Since your system only appears to have positive voltages, what is the purpose of the circled LEDs that require the top wire to be negative in order to illuminate?
You say the output of the VCO goes to 0.735V. Where does that magic value come from? Why can't if go to 0.5V or 0.9V instead?
I'll get you the detailed schematic shortly.