Possibly totally unrelated but I just did a Husky 345 which exhibited the same symptoms.
It threw me all week till I finally decided to remove the starter pulley and check the condition of the spring.
Well blow me down if the pulley had not split into 2 discs and when the rope was pulled on the saw they moved apart & jambed.
Without the plug or when off the saw the cord pulled out & retracted easily and properly .
It is the little things that drive you mad.