I'm looking at this part of the diagram
I'm noticing part 83 (Washer 5140032-75)
That washer appears to be bent on purpose on the linked website for replacement parts and I'm guessing that it would keep the tension on the threaded dowel consistent. I think mine is missing or it was flattened out when someone torqued the mechanism.
Upon further research that is a bowed washer, spring washer, curved washer or wave washer. Their purpose is to retain tension and it's likely the solution to my gears binding. More can be explained in this video: https://youtu.be/sG1gSQGZQl8?si=nQhzR2a8TZUwJ5rY
That's another guess.
Would like to get some guidance here.
I am reluctantly ordering a single wave washer here for $9.76 if you include shipping:
5140032-75 Washer, Curved, 10.1 X 17Mm - Dewalt®
I checked all of my local hardware stores. I think Lowes usually has these, but they said their small parts vendor hasn't come to restock anything in a long time and they weren't sure when they would be coming back. All other hardware stores in my area didn't have them or staff wasn't very helpful.
I will keep everyone updated. I hope this is the last part that I need to order online. I'll try to do a summary video when I'm done because I haven't found many that really get into this level of detail on repairing this specific issue online. I'm just glad I'm keeping this thing out of the dump and I hope to start using it soon so I can start to build and repair some stuff around the house. Super excited about building a French Cleat system in my shed.