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Probably what you are calling the brake is the anti-kickback mechanism (it looks sort of like a hand guard in front of the top handle). Just pull the top of it towards the handle, and it releases the chain.
The plastic safety kick back may be engaged. 1) unplug the saw. 2) push the kick back safety ahead then pull it back ( it is the guard in front of the handle)
Now if your electric motor is turning, but the chain sproket is not, it may well be the clutch. Tap it with a small hammer, make sure it is free and not hanging up.
Modern chainsaws have the ability to run without turning the chain via the chain-brake. To set the brake the uppermost handle is pushed forward (toward the chain) and a firm snap should be heard and felt. To release the brake you pull the same handle back (towards the engine) and get the same "snap".
Concerning oil leakage: Bar/chain lube collects on the inside of the clutch cover and the sawdust mixes with it as you saw. A surprising amount of oil gets absorbed in the sawdust and later seeps back out when the saw is at rest. If the level of oil in the tank noticably drops after sitting overnight you may have a leak...otherwise it's normal.
As for a running chain that wont cut, it is common for chains to be installed backward and the unit still function perfectly (it just won't cut wood). See the proper chain orientation here. In this photo the chain travel is from left to right.
my guess is that you have a crack or a hole in one of your fuel lines. this is very common in chainsaws and weed eaters because they are used very little and sit for a long time. try checking this and repair if necessary. let me know if this works.
1. Is there a Homelite/Ryobi dealer/authorized repair facility near you? If yes I'd try them they may repair it. 2. Any major chainsaw seller/repairer may be able to repair it... there will be a fee. Lou I own a few chain saws without chain brakes. I also own and use good PPE.
I have the same model chainsaw with the same fault. The brake is not releasing when the brake handle is pulled right back. I can only run mine if the brake handle is pulled back to the main handle with a tyrap - defeats the object of the auto-brake completely. Design fault I reckon.
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