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Be sure to use brand new needles in the machine (confirm they are the correct needles for the machine) and make sure they are installed facing the correct direction and pushed all the way up before tightened. Start a chain without the fabric, then when it's a couple inches long, raise the presser foot and add the fabric.
Could be your machine has a timing issue and probably requires service.
This is a very exacting mechanical adjustment, don't try this repair yourself especially on a overlocker. More than likely you won't be able to get the correct tools to do the repair. Get this machine to a sewing machine repair shop.
I would suggest that you buy a new manual for this as your overlocker has 5 threads that need to be threaded up correctly to form a stitch and there are several different stitches that can be made with this model such as a rolled hem, chain stitch, three thread overlock, four thread overlock and safety stitch with three thread overlock, lots to learn.
Most likely is the left looper thread is trapping the needle threads.
Remove the threads and start over in this sequence....
Left looper - right looper - left needle - right needle.
If you thread the needles before the lower looper, the needle thread wrapped over the looper will be under the looper thread and will never be free to form a stitch, so the threading sequence is critical.
Make sure the chain stitch thread is threaded exactly as it should be, make doubly sure the thread comes off the bobbin vertically and runs through all eyes smoothly. Any faults in the threading causes extra tension at the needle despite what the tension is set on.
If this is not the cause then the needle depth and the looper timing needs checking.