My PCS10 does exactly that too and I think that's by design. i.e. winding it back in gradually increases the rotational resistance until it locks, so there's a taper in there somewhere presumably.
The 'problem' may be that it's been wound out so far that the thread which pulls it in and out has disengaged - I can make mine do that at roughly the same extension as your photo shows (I'm not about to pull the blue bit to find out whether it's then totally detached...). If it's not winding back in, a light pressure on the blue part, towards the black part, re-engages the thread and it goes back in and locks - at least mine does. I've just done that a couple of times and I can't feel that there's anything more complex than a thread on the end of the blue bit and an encircling thread attached to the handle. Maybe just jiggle the blue bit slightly whilst rotating the handle to re-engage the thread in case there's a [surprising] misalignment.
I agree with the thing about the two parts becoming 'stuck' sometimes, though a bike tends to act as quite an effective long bar.