The viewfinder framing and focus point is an LCD overlay in the viewfinder. As the battery is fine, then either the LCD overlay has failed or an internal connector to it has become dislodged.
You're on a hiding to nothing with this fault as parts are definitely no longer available and no professional repairer will touch it with a bargepole as anything they do is likely to far exceed the camera value and the chances of a repair are low.
All you can do is to open the camera top and to try and locate the fault. If it's a loose connector then you can reseat it, but if it's anything else then you need to decide whether to live with the fault or to replace the camera. I have been unable to locate a free schematic download nor any repair manuals for your camera: they never sold in huge numbers and were never intended to have major repairs, so unless you wish to look further for paid-for manuals then you'll have to work out the repair sequence for yourself. I haven't worked on a GR1 for about ten years so cannot recall how to dismantle one, sorry.
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