I see what you are saying. The needle was up and not in a stitch, but the threads would still not pull out freely without wiggling the handwheel. I decided to investigate further yesterday. I removed the bobbin, and disassembled the bobbin case. The portion of the case where the tensioner is, was the issue I think. Between the tensioner piece and the case, it was very dirty and very rough. I cleaned and polished these areas and put the case back together and readjusted the tension for the bobbin. It now pulls out smoothly. I assume it was the rough and dirty area where the thread runs through that was causing it to catch. A simple 5 minute clean job and it appears to be good as new. I think this could also prevent stitch issues caused by the bobbin thread not pulling thru smoothly.