Over the past few weeks, my Wi-Fi signal has been getting progressively worse, to the point standing right next to the router (Draytek Vigor 2860n+) shows no SSID. I've now discovered that if I select any channel other than 1 to 4 (channel options are 1-13), the Wi-Fi works as usual with same range it used to have.
A few days ago, when the range was at its lowest, but still visible, I decided to take the router apart and inspect the PCB for any signs of damage. I noticed a few capacitors had leaked and/or were bulging, and I replaced them. There are two remaining original capacitors without any sign of damage, but I didn't have any replacements for them, so I have left them as is. I've also fitted a fan to the router to reduce the heat build up, but none of this has made any difference.
Interference wise, there is only another access point in the house that was on channel 12 which I have now changed to channel 1 which doesn't seem to have any issues on that channel. The neighbour's Wi-Fi AP is right on the edge of range, if visible at all, so interference from another AP seems unlikely to be the cause, and I can't think of anything else that might cause interference on just those channels.
Due to the bad capacitors, I was initially thinking it was a hardware issue, but now I've discovered the problems are only on channels 1 to 4, I don't really know what could be the cause.
It doesn't seem to be a client issue, as every Wi-Fi device that normally connects to it (6+ devices) can't connect to the router when it's on channels 1 to 4.