When the mode collar gets stuck on your Milwaukee drill you can repair the inner mechanism that keeps it from functioning correcty. It will lock in one position and not allow the collar to turn. Forcing and wiggling doesn’t seem to fix it, this is annoying because you want to go from Torque, Drill, Hammer.

If that’s the case, something is wrong inside. Most likely it’s a stray bearing ball. One of the balls in there came out of place and got wedged in between teeth of gears.
Before you do anything more, remove battery. Working on any tool with power means safety first.
How to Fix the Drill

Now you get to some basic stuff that folks seem to forget: The screws on the housing. The case itself has several screws holding it in place. As you remove them, keep them organized. The screws is different lengths, and mixing them up can cause trouble when you put it back together.

And then you put them on a paper towel to keep track of them since some are different lengths.

Once those screws are removed, you pop the case open. There it is, the inner workings of the mechanism. Pull that gearbox free and take a good gander at it.
Inside are some gear and all that grease keeping ’em from grinding on one another. Maybe they’re beat up? Maybe they’ve got worn teeth and cracked plastic or maybe not.

Then one of the little bearing balls usually works loose. It lodges solidly in between the teeth on the gears and won’t turn at all. The bearing ball rolls out of its proper track and blocks rotation completely, this is a classic mechanical failure in this type of tool.
Gently pull the bearing ball out. Patience are required not to tear up the gears trying to get that thing out.

Now that the ball is out, the gears spin freely. Problem solved!
While you have it opened up, go ahead and check the chuck screw. Should of been good and snug, and if not, then something has come loose. Fill ‘er back up with some new grease since old grease tend to dry and no longer helps the gears move.

The mechanism runs smoothly with fresh grease.
Reassembly is the reverse of disassembly. It involves lining up the gearbox and lowering it back in. Make sure everything seat properly. Then I began to screw things back on. Use that tidy stack of screws so they all go where they belong and the housing snaps shut tightly.

Now you reattach the battery and try it out. The collar slides freely between all of the settings. All three modes works flawlessly: torque, drill and hammer. You’ve solved your jam and now the drill’s alive again. It is a simple fix.

This can work when other quick fixes don’t.
It’s not the quickest solution, but it doesn’t require purchasing a whole new drill. Now your tool works just fine again. All you’ll need is a screwdriver. You won’t need any specialized tools. Almost anyone could do this themselves. Just make sure to keep an eye on the little pieces, they tend to go missing quickly.
Turns out it was the bearing ball. It is one of the common failure points. The gearbox should of been kept clean to avoid that happening.
Tools are only as good as their maintenance. You get to solve the mechanical puzzle yourself and away you go, the drill is back in action.