It still may be stiff causing the issue. Mercruiser uses a shift interrupt switch to temporarily kill the ignition when coming out of gear but bad cables, misadjustment can screw it all up. On the starboard riser is the shift bracket where you will find the shift interrupt switch, try temporarily disconnecting one wire and see if the engine will stay running when moving the control. If it does I would replace both the upper and lower shift cables.
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1997 Silverton 362, 7.4 Crusaders
1997 2400 SCR, 5.7 Vortec / Bravo 2
Mike
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