Read wheel lock issues

Hi guys hoping for a pointer!

I was making sure everything was as tight as it should be on the bike with a torque wrench yesterday. And once I was done the rear wheel wouldn't lock in its unfolded position.

I've made sure that the suspension block is at the 6pm position, and as you can see, there doesn't appear to be any meaningful wear on the clip spring.

I think the spring itself seems to be slightly out of position, if I hold the release lever up firmly the wheel stays locked.

I've tried adjusting the tension on the seat post bolt but I've not had any luck. Could anyone advise me?

Thank you all so much and happy as always to be a part of this community!