If I follow what you're saying correctly... you're saying that the billhook finger is hanging onto the tail end of the knot rather than the actual knot itself? If that's the case the first thing I'd do is unbolt the knotter frames and flip them up. I suspect that the twine knives simply need sharpening. I don't recall how they're attached on that baler... some you can unbolt the knife off the stripper arm and some you need to remove the arm. File a good sharp bevel on the knife with a medium flat file and reinstall. With the knotter flipped up move it such that you can move the stripper arm over the billhook. Make sure that the stripper makes good contact with the hook at about the midpoint of the hook and follows the arc of the billhook through it's cycle. If that appears good, bolt the knotter frames back in place. For dry testing... what I usually do, with the bale chamber completely empty... I run the PTO at idle and very carefully reach into the chamber, minding the timing carefully and grab the string very carefully. I pull a bunch of string up and out, then trip the knotters. It's very important that you hold tension on the strings or the knot will not form... If you can do that at idle in the shop then it will tie when you get to the field unless there's a problem with the hay dogs. Keep in mind that if the hay dogs do not drop and hold the charge, the baler will not tie properly or ties sporadically... If it still doesn't tie and it's not releasing the knot from the billhook... THEN you can try releasing some tension from the billhook finger one turn at a time until it slips off.
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