Presuming the metal friction surfaces are smooth (ie. not rusty or pitted), disc brake locking up is the result of excessive distance (wear) between the inner and outer non-moving friction surfaces. However it can also be caused excessive actuator plate ball ramp wear, slightly undersized actuating balls or wear (notching) of the brake shaft splines.
What’s happens is as the balls roll to the ends of the ramps they become wedged when the brake begins to take hold. Further movement causes the brake to "cam" and lock up. Backing the tractor unwedges the balls and releases the brake.
The ideal repair is new parts (inner housing, cover, actuating disc assembly). However you can probably accomplish the same thing by milling perhaps 0.10” off the cover mounting face - effectively decreasing the distance between the inner/outer friction surfaces.
Alternatively OEM Tractor Parts can rebuild Super series disc brakes - I don’t recall the cost however.
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Incidentally from my personal experience the Farmall Super series disc brakes - with all internal parts within tolerance, clean (no oil!), and properly adjusted - work great…..better than the earlier band brakes IMHO.
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