Spins and stops and retries and does not drain

Hi,
The washer fills agitates and after that it tries to drain, I can see the tub starting to spin slowly and within 5 or 6 seconds stops spining and draining. It will wait for a couple of minutes and do the samething drain for a few seconds and then stop. It would not finish. There are a couple of times it eventually finished after a couple of hours in hand wash cycle.
I checked the lid switch. It is working and I have also shorted it to bypass the switch. I can see the cluch holding still on agitage and starting to spin when it starts to drain.
I had the drain pump apart and it is clean. I am not sure how to check if it is working. I put my little finger and I can spin it but not very freely.
I checked the pressure switch and it does click if I blow into it.

I had the tub cap ring taken out and cleaned between the inner and outer tub and put the ring back on, now when I run the machine, it starts to agitate as the water is filling. Normal behavior was it always waited till it fills up and only after the lid switch is closed it will start to agitate. I am not sure what suddenly causes this as well.

I had the motor and the tranmission taken out and when I rotate the clutch, it moves the motor spindle where the pump mounts.

I am at a loss on what is wrong. Any help would be greatly appreciated.