Yes, on some earlier schematics "M" (the Roman numeral for '1000') represents the current "K" (kilo) ohms rather than the current "mega" (Greek for 'large'). There's always been some monkey throwing a wrench into the nomenclature.
Not sure about the color code to the tone switch - if it works, don't worry about it. Those wires have a bad tendency to fade into completely different shades over time.