OK, I did some more "testing"- the dryer IS working, but not 100%.
The flame would not come on if I place the selector on the regular cycle, with the dryness level at the default (medium).
The flame comes on fine if I place the selector on the heavy duty cycle.
IF I place the selector on the regular cycle and increase level of dryness to "more" on the touch pad, the flame comes on just fine too.
So the only thing that seems to be not working is the regular cycle on its default setting.
Putting wet cloth over sensor bars did change the resistance.