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If that arm rotates the key won’t come out. It’s connected to the collar on the column to the front of the collar the key is mounted in. They turn together.
I bought a non running car that way and the sellers were about ready to start in with screwdrivers and hammers to remove the key. So I sat in the car, rotated that collar and removed the key. The look on their faces was priceless!
If you have it hooked up on a 1970 floor shift car look at the column when putting an AT in park, and a manual in reverse you can see that collar on the column turn into position to remove the key. Wild.