The picture was off the internet, and is a Spicer hub.
I have the same hub on a 1978 K20.
It has been a long time since I have been inside the hub, but I sure don't remember having two snap-ring grooves on the axle.
The only way I can think of that would prove that the groove you are using is wrong would be to turn the dial to unlock. Then see if it actually did unlock.
If it will not unlock you know you are in the wrong groove OR the plastic cam is worn out.
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Today's Featured Article - Oil Bath Air Filters - by Chris Pratt. Some of us grew up thinking that an air filter was a paper thing that allowed air to pass while trapping dirt particles of a particles of a certain size. What a surprise to open up your first old tractor's air filter case and find a can that appears to be filled with the scrap metal swept from around a machine shop metal lathe. To top that off, you have a cup with oil in it ("why would you want to lubricate your carburetor?"). On closer examination (and some reading in a AC D-14 service manual), I found out that this is a pretty ingenious method of cleaning the air in the tractor's intake tract.
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