My first guess is that the bungee is too strong and is possibly torquing the router to the side and binding it up enough to cause it to not move (and possibly make the orange tab to pop out of the slot on the router).
Ok I re-configured the bungee’s to put less pressure and I made sure the pressure is pulling the router up a bit instead of down. here is what it looks like now

When you say you support the router, do you mean that you are helping guide it out? (this is what I am guessing would alleviate the binding)
Yes, i just try and keep it centered and not pinching anywhere
Does the z-axis plunge but not raise?
It does both, but it’s harder to get it to raise smoothly. However it binds in both directions
Ok I did some closer looking at the groove inside the base and I think I see the problem. there are small gouges that that little nub rides in.
I really think this is it but I’m not sure how to solve it. lubricant doesn’t seem to work. I guess I could file it and see where that gets me