I finally got around to putting together an older Litespeed Saber. It came with the integrated HS and Reynolds fork. I followed the instructions to the letter on putting all the pieces back together, bearings, spacers, plug etc. Now the steering is waaaay sticky. If I loosen the cap and plug so it’s not sticky, the fork/steertube rattles and is not seated properly.
Yes, sounds like bad headset bearings. I would start by taking them out, checking the condition of the seals, and regreasing. If this solves the problem, you’re done; if not, invest in a new headset.