I was going to mention that the manual release valve looks to have been ground down. The button should normally stick up at the highest position only 1/4". Your's looks to be more like 3/8" or more. I'd say it got stuck in the full down position and they ground it down so the PO could get some pliers on it and pull it up. I'd just get a replacement auto release valve from the supplier R Bedell linked to or post up a wanted ad for a used one.
On the non-charging issue, it could be the rectifier not working properly. This is solid state and is non-servicable. Have you replaced the spark plug with a new one yet? I may have missed it in a previous post if you did. Plugs out of the box can be bad too if you have replaced it. I'd try a known good one to be sure. Or and spark tester if nothing else.
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