I had the exact same problem - no focus light in AV TV and P modes. Tried resetting camera but nothing. Finally realized it was set to AI Servo. Changed to AI Focus or One Shot and all is well again.
I too have the 70D with the 18/135 kit lens among others. I use the 18/135 the most and the focus/soft problem is infuriating. I tried all the settings and found the lcd creates the sharpest pictures. The viewfinder is a chance shoot. Maybe 2 out of ...