As others have said, the original problem needs fine tuning of the limit screws and cable tension. A common mantra with FD problems is to give it more tension. However, with 4 position FDs, too high a tension can have the cable tighter than it needs to be, and it is trying to throw the mech beyond what the limit screw will allow.
The cable and lever position are therefore in position 4, but the actual mech hasn't been able to move beyond position 3. In this case, the first release click of the lever eases the tension, but then the mech stays where it is as it's actually in the right position for the lever/tension.
Not sure if this helps, but good luck getting this sorted, John.