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It is a fairly common problem in 850. The typical solution (temporary) is to pry the glove box compartment open as much as possible (as you were already did it) and then use a hacksaw blade to cut the "metal loop" of which the glove box lock/latch hook to when close. After that you need to open up the glove box lock mechanism to see which part is broken inside the lock.
Do a search in this forum, you will find the post which shows you how to fix the latch/lock.
Ching-Ho Cheng
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1995 855 NA, Bilstein Strut & Shocks, K&N Filter, E-Code Lens, Alpine CD-Changer, AutoDim RearView Mirror
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