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The first question is how it generates PWM signals. Besides the main FET switch, the primary side has only one additional transistor. But the primary side has one auxiliary coil, which provides the positive feedback for oscillation. The secondary side does not seem to even have a voltage reference, so how does it regulate? There are only a transistor and a POT that feed the optocoupler.
After replacing the faulty MOSFET and the blown fuse, the switcher works again. But one problem with the circuit is the lack of short-circuit protection. The primary side switch can turn on hard and destroy itself before even the fuse blown.