Hard to tell from the photo.
Check for wear on the pawls where they engage with the ratchet teeth, check for broken ratchet teeth, check for worn teeth on that kick start pinion and radial wear in the pinion's bush also worn teeth on the kick start quadrant.
Remove the inspection cover at the top of the box and check the end float on the three shafts, should be no more that .010" also check for up and down play at the sprocket end of the main shaft, should be barely perceptible.
It should have cheesehead screws retaining the inner cover...:laughing:
More seriously, have it apart and check everything for wear, there will probably be some..Replace worn parts as required, reshim if necessary and reassemble...If things are within limits it should work...
However, bear in mind these gearboxes are NOT designed to select gears when static...Movement and the inertia of the various moving parts when running are needed for correct dog engagement etc...Ian