I cleaned in jars of lighter fluid, in a water bath, in a domestic ultrasonic machine, for 10 minutes. I am thinking that this has maybe left a sticky residue on pivots and bearings, so I plan to re-clean and rinse with isopropyl alcohol.
I didn't oil the escape wheel pivots at first, though I tried it later. It made no difference. I used Dr. Tillwich 1-3 (a fine watch oil for low-load pivots) on the 3rd. wheel. I used the same oil for the balance, and Möbius 941/2 on the pallets.
I think I figured out why the hands move in any direction. looks like it was taken apart once before, the gear that engages the hands when the lever is pulled out was upside down (pic below). The spring was sitting on top of it and I flipped it over and pushed it down on the spring so that when the lever is out it pops up and engages the hands and lever in it's pressed in and disengaged. The movement seems to work now. Now I'm on to why it doesn't wind.