Howdy Sky!
The gas valve is made to only move laterally while the weapon is assembled. The lower center position is to remove the valve, spring and button for cleaning. That said, if the button and valve do not move freely between the left and right positions while the button is depressed, something is impeding its progress.
The only suggestion I can offer is to remove the gas tube, then move the gas valve to the left lower position and remove the valve, button and spring. There may be a burr or something in there impeding movement. Since most of these units were put into storage godawful long ago there's no telling what could have gotten in there.
I hope you get this resolved, 'cause these things are an awful lot of fun to shoot, even if you're fresh out of grenades!