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You might be better off selling it as non-working if you haven't done VCR repairs before.
The VCR is attempting to do some things as though the tape is fully loaded (moving the pinch roller against the capstan, but the P2/P3 guides that pull the tape out also haven't moved which usually would probably happen earlier in the cycle.
This is one where I'd say it is most likely a dirty mode switch or a belt that has rotted away or is slipping. The problem is that it is possible to damage things further in the process of attempting a repair, particularly if you aren't able to manually unload the stuck tape without forcing things.
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