There is a protective collar around my selector, that you do not seem to have.
However I don't think that the selector position should make a huge amount of difference. My understanding of it is that it sets the number of exposures in the exposure counter.
The counter is moved by the movement of film, inside the camera. When I dry fire the camera, the counter does not advance even though I can wind the advance.
However, I am not a Service expert. I do have a copy of the service manual if you need diagrams, etc.