Since the rod does not move up and down, something is disconnected below the powerhead. Hint: Do not remove the powerhead. Remove the exhaust housing. Pretty easy to do. Lock motor up in tilted position. Remove the reverse tilt lock bail (that curved piece where the stretched spring is) by removing a few E-rings. Remove the lower mount springs bracket & springs. Remove the ring of screws holding the exhaust housing to the powerhead. Complete exhaust housing and lower unit will now drop down and away and you will see the shifter linkage above the water pump. It’s all held together by a bunch of C-rings, roll pins pivot pins, etc. All that stuff has to come out to access the water pump anyway.
