Yes the slide is 12 volts. When the battery is removed your converter will be supplying the 12 volts to everything. Normally this is not a problem but in your case I would suspect the converter is failing.
When the battery is in place it will smooth out the output from a converter. I'll get a bit technical here (sorry, it is the technician in me). Often when a power supply fails its output will change from smooth to a large sawtooth waveform meaning it is jumping up and down and looks like a saw. This failure occurs when the power supply's filter fails. I've seen it many times. If you were to put a scope on the power line you would easily see it.
OK, I'll stop the technical training.
To sum it up, odds are your converter is bad. If you put the battery back in it would probably smooth things out but the converter may not properly charge it.