With no belt on, the pto will rotate even if not engaged unless the button friction is able to stop it.
Maybe the spring plate is bottoming out against the end of crankshaft when the pto is in the disengage position?
Due to bearing too far onto crankshaft?
I have a pto from a P.O. and I can see where that was happening as the crank side of the spring plate is all worn pretty good.
Does it get hot when the pto is engaged with no belt? It should not unless the bearing is bad or the set screws are allowing slippage on the bearing.
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