It could.
The unit has two tests that it runs to determine if a transducer is connected or not. The first is to check for the presence of the built-in temperature sensor. If one is there the unit should automatically go into the Normal operation mode. If it does not detect the built-in temperature sensor it “pings” the transducer and listens for a ringback. If it detects any it assumes a transducer is connected and automatically goes into the Normal operation mode. If it doesn’t detect any ringback it assumes no transducer is connected and automatically enters into the Point Of Sale Simulation mode. The ringback detection is not a 100% test though, so you could have a good transducer connected to the unit which it cannot detect. This is why the Demonstration menu was added. Set it to “Off” and the unit will go into the Normal operation mode regardless of whether it detects a transducer or not.
However, your problem sounds more like a damaged cable or something that would affect both the temperature sensor connection and the 2D sonar at the same time. It could be that these both failed at the same time.