Omega 1012 Hand Wind Issue

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Working on an Omega cal. 1012 and I’m chasing a weird hand-setting issue.

With the pallet fork removed, everything functions normally. Winding works, quickset date works, and the hands can be set normally in the third crown position. I did have to replace set lever as it was worn beyond use, However, while setting the hands, the going train is being driven strongly all the way through to the escape wheel in both directions.

As soon as I install the pallet fork, winding and quickset still work, but I cannot turn the crown to set the hands in the third position. When I try, I can physically see the escape wheel loading/pushing against the pallet fork and the train locks.
So basically, hand-setting is back-driving the entire train, and once the pallet is installed the escapement becomes the hard stop.

Have any of you run into this on a 1012 before? I’m trying to figure out where the hand-setting friction/slip is supposed to occur on this caliber and what could be seized or assembled incorrectly.

Greatly appreciate your collective minds. I can provide pictures and try to get a video of it if needed.
 
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It is a too tight cannon pinion. IIRC it is the center wheel in this one. The steel center part is actually 2 pieces, so the cannon pinion friction happens between those two.

 
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That sounds very odd was the watch running/ operating somewhat normally before you started playing with it ? A tight cannon pinion that’s incorrectly installed can cause issues like this and could be possible it’s that if it’s putting pressure on the seconds pinion or possibly a bent seconds pinion putting pressure back through the watch? shoot a few photos ? Probably won’t be able to see anything tho
 
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It is a too tight cannon pinion. IIRC it is the center wheel in this one. The steel center part is actually 2 pieces, so the cannon pinion friction happens between those two.

Hahaha beat me to it
 
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I work a lot with these calibers, and part of my usual workflow is to separate the cannon pinion from the wheel and clean and lubricate it carefully. A thin sheet of metal with a hole in it can be placed on top, and the cannon pinion can then be grabbed with a pin vise and pulled straight off. This usually works great and gives it the proper amount of friction again after cleaning and lubrication.

If this isn't done and the cannon pinion is too tight, it can easily damage the date corrector (1010 1568) by breaking off its teeth.
 
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Naptha bath and a jewel gauge for the win! Thank you all especially @Archer you guys are awesome and I appreciate you.