On this machine, instead of labelling L2 as L2, they left it as N. On this machine, there is no neutral. Probably a universal diagram because the machine was possibly offered in a 120v version as well. Either way, it doesn't matter.I don't know about this particular machine. I'm just contributing ideas and food for thought. Many 240v machines have 2 hot wires and some have the neutral wire too. And some that have the neutral don't use it. There are lots of possible combinations.
Again, just suggesting things that occur to me as possibilities to look at. They may or may not help.
In this case, measuring L1 to ground, or N (actually L2) to ground should each show 120v, and 240v L1 to N (L2)
Test for 120v, 240v where it should be, test for proper 24vac where it should be, and test the motor directly to 240v, and you'll find your problem.