If the bit is spinning at idle and its idling normally. Most likely a broken clutch spring. I just replaced mine yesterday for that reason. Same exact auger. $20 spring at the local small engine place and 1.5 beer job.
Yea I did a bit of research and it sounds like a relatively common problem. Only outlier in my experience compared to others is they say that their auger stays “in gear” so to speak. As in the clutch stays engaged, if the clutch is engaged then you shouldn’t be able to turn the shaft by hand when the auger isn’t running. Unless the gear ratio in the transmission is allowing me to turn the shaft and the engines rotating assembly without much resistance.
I’ll take a look at it again tomorrow if I can, maybe take the transmission apart and have a look at the clutch assembly. Already checked with local shop, they’d have to order the right spring. So if that’s the issue…I’ll have to wait till Friday when I’ll have time to go to D-rock or H2 Outfitters and get the spring from them.