That sounds like a “seal in” relay problem would be the most likely cause. I’m not sure where it is located on that specific model but it essentially leaves the pto on if all the safety criteria are met such as seat switch reverse switch and maybe others. As you’ve noted it engages in the fully up “start” spring loaded position but drops out in the middle “on”position. I believe you have either a safety switch problem or that relay itself. I’m sure someone here can help out with a wiring diagram
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