Oh no not that loading mechanism. I know this problem well.
My SL-2700 uses the same design and the loading gear is prone to jumping teeth, the loading arm slipping off the carriage or simply breaking. In my particular case it got so bad that the gear broke in two and being a thermoplastic it is impossible to repair. In my particular case it wasn't a grease issue. It's just a poor design.
Sony Apparently did issue a substitute gear later on that was made of metal instead of thermoplastic but I've never been able to source one both locally or online so my deck has sat on a shelf for the last seven years.
Looking at your photo I think I can see your arm has popped off the carriage and while it's fully ejected, the position switch is in the carriage if I recall so it just tries to continue ejecting but all that happens is the gear jumps teeth.
I would also like to point out that removing that gear is an absolute pain in the ass.