Top Thread Catching Underneath?

I have a Baby Lock machine. When I put the needle down to catch my bobbin thread it gets stuck underneath and the needle can't even go up again. I took it apart and it's catching on the "hook race", that is what I think it's called. There's a round metal circle with a hook type edge under the bobbin holder.

The thread loops onto that and gets stuck. I tried forcing the ring to the right so it would be out of the way, but when I put the needle up and down it goes back to where it was. The bobbin holder is in place with stopper. I cleaned it all out. I have no idea what to do. Any help?

By Shawna S