This is the second yellow cartridge.
Question, do you have the original OEM yellow cartridge? If so, reset it and put that in the printer. If it works, take the chip off that and put it on the IJM cartridge.
If no cartridge works, it's most likely a bent wire on the chip sensor (the sensors are legendarily flaky with OEM and non OEM carts alike). This sensor is $1.50 at compassmicro.com but can be a pain to replace because you need to take the ink bay out.
Take a look at the sensor to see if wires are bent or broken. Looking at the photo I see one wire that may be bent down a but but it's hard to tell.
Before I worked at IJM, I ran these printers with IJM carts for over a decade. I would aways just use epson OEM chips they fit on these carts.
Pro tip: any 9880 chip besides the MK chip will work. You do not have to put a Y OEM or IJM chip on the cartridge. If you use an LK chip on there the printer will just through a "non-genuine ink" message at you and you can just hit pause and it will work. So if you have _any__ oem chip or other IJM cartridge lying around, try it and let me know.
Replacing chips on the x880s: