A rocking dog mechanism has certain similarities to that of an inertia seatbelt......spin the belt reel by hand and centrifugal force causes the mechanism to lock.
For the rocking dog to work and lock the rotor to the anvil, the rotor has to spin bloody fast, and it will only do that if the vanes are free to slide in the slots on the rotor.
5mm air supply pipe is nowhere enough - 10mm is the minimum, and keep it a short length of hose if you can. That hose has to supply quite a large CFM!
Your wrench will always work better tightening as it slowly rotates the nut a bit at a time.....many a cheap wrench will give up if a nut is very tight.
The rocking mechanism should still work, of course and you'll hear that.
John