The reason for the handle release pedal being how it is, is because the wheel to the side of it has worn right through the chassis and into the pedal.
This was an early problem with Turbopower cleaners and one which was easily resolved long before this cleaner went into production. A thin metal washer was placed behind each wheel when the machine was built, and problem solved. Quite how the wheel has worn through on your cleaner, I just don't know. Is there a washer in place? I do know that the Turbopower wheels were known for falling off from time to time, and if the user put them back on without the washer, it would explain what might have happened.
The U2332 (green) Turbopower was a strange one as many of these did not have the wheel washers, even when other models in the range built at the same time did.