Won't Shift Into Gear

Hey guys, got the motor running in the jeep, runs awesome! Now, can't figure out what's going on with the clutch. It grinds, but won't go into gear. When you push the pedal in, it lurches forward, like it's stuck in gear. I do have the transfer case shifter not assembled yet, I'm installing a jb twin stick. How much pedal play should I have? The trans is sm420

Do I need to pull the transmission?
Thanks Chris

 

Also, when I removed the transmission the clutch release retainer was broken off. Basically, just the bolted end was installed.

Something was wrong here..
Thanks, Chris