Just in case this might be an issue:
Some of those 70s V4s also had another safety switch which was found near the lower bypass cover on the starboard side of the engine. This safety switch prevented you from cranking the engine on too high of a throttle setting. I’m not sure if your engine has this safety switch, but it is easy enough to spot if it’s there. Sure sounds like the neutral safety switch is to blame here, but anything is possible.
If by chance your engine is equipped with this extra safety switch, simply ground its connection lead to rule it out as a possible cause….