I'm assuming you have adjusted the freeplay at the top of the travel to 1/2 to 3/4 inch.
If that is correct, and it still won't release, it's time to go in and see what is wrong. Most likely a new clutch assembly, release bearing and pilot bearing will do the trick.
That is a dual clutch set up. There are some initial adjustments to be made before the engine goes back in, and you will need an alignment tool. (Some assemblies come with an alignment tool.) A shop manual will be a good investment before tackling the job.
You may also want to consider replacing the front transmission seal while in there.
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Today's Featured Article - George's Fordson Major - by Anthony West (UK). This is a bit of a technical info to add on to the article about George's Major in the "A Towny Goes Plowing" article. George bought his Major from a an implement sale about 18 years ago for £200.00. There is no known history regarding its origins or what service it had done, but the following work was undertaken by Harold alone to bring it up to show standard. From the engine number, it was found that the major was produced late 19
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