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IF the gears spin freely when the mechbox is screwed shut, then the problem is 100% your motor simply can't provide enough torque to overcome the force of the tensioned spring.
Assemble the gearbox without the anti reversal latch, spring, piston, cylinder, tappet, etc, and see if they spin free.
Then assemble with everything and see if the air nozzle moves back and forth freely (that'll determine if it's rubbing on the sector)
You'll need a new motor, and I'm not surprised since the G&P M120s are just about the bottom of the barrel for motors.
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