"John, could be one of a few t
"John, could be one of a few things - start with the easiest first.
Is there oil in the lower unit? Is it clear (looks like oil) or is it milkly, full of water, have metal shavings or worse, metal bits present?
If the shift rod appears to be operating correctly, at the bottom of the rod is a shift cam and a follower that need to work together to push another rod (stubby horizontal one that engages the clutch) to change gears - any could be broken or the clutch spring could be shot.
All except checking the oil would require disassembly of the lower unit."