Not necessarily (tho it might be?).Sounds possibly more like a 3 port mid position valve then.
Separate valves: With HW demand on and CH demand, if the microswitch has failed to make on the CH port, that is a typical result. Could be because it's not fully motored over or a failed switch (highly likely with some brands of motor valve). Complete motor failure would mean the CH circuit is closed though, so we might have eliminated something.
