In my newer 7000 I reels the I (instant reverse) doesn't work that well but the dog, if clean, will.
Take the dog out, clean it off with some solvent so there is no grease left and clean the gear thing (technical name) it rides on on both sides as well, then pinch the dog together and put it back on. I had the same problem and am 95% sure that will fix yours. I don't know why those IAR bearings don't work in the 7000's??? Never had a problem in my 6500's.
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