Well, this is a very odd failure. Don't think I've ever heard of anything like this, usually when a hydro fails it's very noticeable what the problem is!
I was thinking perhaps the splines on one of the axles stripped out, but it sounds like that can't be if you still feel the resistance of the motor turning when you rotate the wheels.
But, by any chance, do you think the charge pump went out? Or perhaps the charge pump pressure relief? If the charge pump can't provide fluid to the drive pump then the system won't pressurize and it'll be able to roll freely.
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'70 107 with k301 engine swap
'71 106 with 38" deck
'70 147 R with factory replacement k321, 42" deck
'61 Original with 38" timed deck
'63 70 "pinkie"
1863 with 54" deck
'46 Farmall H, '50 Farmall Cub
105 x2 (parts)
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