Need thumb latches
Hello! It sounds to me like both of your issues have the same source: broken thumb levers. If the hooks on your mortise extend with a screwdriver, but bind when you throw them with the thumb lever, then then only explanation is that the thumb lever is damaged or malfunctioning in some way. These are just strips of metal, so a malfunction in this case usually means that it's just straight up broken.
I suppose misaligned screw holes could be an issue, but it's far less likely. When you test the mortise with a screwdriver, is it still in the door or have you removed it already? If you remove it beforehand then I would definitely keep it in the door and test it again. That will tell you for sure. If they function normally then the thumb lever has to be the issue.
All that said, I recommend our 82-107. I feel very confident that this will work for your handle set.