still plays only one instrument track at a time
I think this project might be damaged, and it would be great if we could take a look at it, as Bee Jay suggested. In the meantime, you should try what Erik suggested about option-click. And here are a few other ideas, although I'm not too optimistic.
Select any region and press S. Three things should happen: this region should have a yellow outline, the ruler should turn yellow, and the solo button in the transport bar should turn yellow. Press S again, and those three things should revert to normal. Is this what happens? It just might be helpful to know.
In the Mixer window, find the button at the top that says "All," and select it. Make sure to look at every channel strip. No yellow S button anywhere? Do you see any Mute buttons flashing?
Press option-K to open the key commands window. In the search box, type "solo off" (without the quote marks). You will see the command 'Solo off for all.' Probably no key is assigned. Give it a key (option-1 might be a good choice, because it's probably available). Close the key commands window, and press the key stroke. Better now?
The channel strip meter still shows that the instrument is playing but there is no sound. When I click back on that channel strip I can hear the sound again. Although the channel strip meter works, the strip in the mixer doesn't show any signal at all.
I have a feeling that when you say "channel strip meter" you mean 'track header meter.' Because it's completely normal that when a midi track is muted (e.g., because another track is soloed) that the track header meter will keep lighting up, even though there's no sound and even though the meter in the mixer (on what is properly called the channel strip) is dark.
The meter in the track header is just indicating that Logic is reading midi from the track. Whether or not that midi gets to become sound is something that happens downstream, and is not reflected in this meter.