:welcome: Dave49er to iboats. Nice to have you aboard...
I looked really close to the breakdown of your engine and I can't see anything resembling a "transport" mode that locks the engine from swiveling from side to side. There is the norm setup with possibly an adjustment to increase the friction for the side to side turning. But I see nothing the locks it from moving. So maybe it is just really stiff from sitting. If I'm not mistaking, there is even a jerk grease fitting there to apply grease to keep it lubed. So maybe the grease has frozen it up some and making it harder to turn. I actually own a '76 Johnson 40HP outboard with basically the exact same setup and there is no travel mode lock for side to side steering. There is a tilt stop. But that won't stop any side to side turning... :noidea: