Yes, that's the problem. The instruction at 0 executes repeatedly during reset. You can watch this happen in the Hardware Simulator by loading AM=A+1 into RAM[0], setting
reset=1, and letting it run. It will eventually write a counting pattern to the screen.
You don't need to specifically add
reset to individual control signals; it's better to have master signals
aInst and
cInst (you may already have these if you didn't use
instruction[15] directly). Then these signals can be anded with
reset and all the other control signals will behave correctly.
--Mark