SrChf
Bronze Member
Yes, that locks the front & rear wheels together but if used improperly it can cause problems you describe and must be fixed by the dealer. It stops spinning of one rear tire while the other has traction but should never be engaged while turning.
I have never touched that lever to my knowledge, and I have no kids old enough to have messed with it. I suppose it is plausible it got bumped while the wheels were turning.