The frequency of my MOD4 FM transmitter is not crystal controlled so maybe its frequency drifts a little but your PLL radio does not drift. Then they are both not on the same radio frequency. I had this problem with my home stereo FM tuner and my car radio. My Sony Walkman FM radio has AFC so it follows the drifting frequency of my transmitter.
I think your radio is overloaded by the nearby FM transmitter project and by local FM radio stations. Then phantom intermodulation "images" appear at a few points on the dial and you tuned the radio to one phantom image instead of to the real signal. My Sony Walkman FM radio gets severely overloaded and strong signals appear all across its dial.
If your radio has a poor "capture ratio" then it will mix a multipath reflected signal with the direct signal which produces multipath distortion.
A good capture ratio ignors multipath interference because it locks onto the signal that is slightly stronger without mixing.
The receiver antenna must be parallel to the transmitter antenna. No obstacles between them. The 9V alkaline battery must be brand new.

