That makes sense now. Remove the cylinder QEPH "Upgrade" and put the stock one back on. It will work fine then. When I tried to "upgrade" mine years ago, I found the tolerances on the "upgrade" parts aren't the same as the stock Cyclone parts. Going back to the stock cylinder fixed my issue, and I ran those other "upgrade" parts until I wore them out a few years later. Lots of little aluminum shavings inside my cyclone. I run stock parts now and haven't had any issues since.
Also, the cylinder isn't put on correctly in the picture, the sleeve inside should be flush with the end of the cylinder. Yours is sticking out. If it isn't pushed in correctly it won't work.
Also, it doesn't look like it in the picture, but you want a drop of oil under the ratchet, so it is moving on oil instead of just metal on the plastic.