Unless I'm missing something here I would remove the top cover, put the range shifter in neutral and see if the sliding collar is centered on its hub, then manually shift it each way to check for proper engagement.
The shifter just clamps to its shaft and can move if not tightened enough. Grinding against the teeth and kicking out tells me it's not engaging fully. The top cover is fairly easy to get off and that is your first move toward diagnosing this problem.
Grinding while shifting is not an issue unless you have a clutch problem as the gear train in those tractors is heavy and takes a little bit to stop once the pedal is pressed. If the gears are not stopping at all that's another issue entirely.
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