Still don't see how that will make a difference. Whether or not the driver is in the baffle, the driver should still work. The baffle is plastic, so there would be no short caused by the housing. If a continuity test doesn't work, I would look at the tiny wires leading to the driver coils and see if theres a repairable break. If not, then the driver is toasted. Gr-07 drivers are very fragile and I get a bunch of broken headphones in all the time. More so than any other headphones I've worked on. Taking the driver out of the housing will surely break them, unless you know exactly what you're doing.
Bottom line, if a GR-07 driver fails a continuity test, then it's likely broken, and it's honestly pretty common unfortunately.
Anyway, we all love headphone anyway. Good excuse to try another pair ;)