Your test of manually trying to select 4th has pretty much confirmed it is an internal issue, but without a stripdown it would be almost impossible to say exactly what has failed.

I rebuild the C series almost every week so i'm very familiar with its inner workings.

The synchro hub is not being allowed to engage with the selector ring or if it is engaging there is nothing holding it there.

Now the only thing i couldn't decipher from your test was wether it stayed in 4th if you held it there

(and slowly released clutch) or if you only got the grinding noise when trying to re-engage after it popped out with a partially engaged clutch, i presume you couldn't hold it in 4th at all?

If that isn't the case and it could be held in 4th then you might want to check the selector detent for 3rd/4th, it's on the end of the gearbox just before the 5th gear end casing, you will see two allen key plugs right next to one another, now i can't remember offhand which one is for 3rd/4th and which is for 5th/reverse

(the 1st/2nd detent is near the bellhousing)

, but it takes 2 minutes to undo the plugs, and remove the detent housing/spring, a little ball bearing should roll out too.

if either of the detent housing is seized, or springs broken, or for some reason the ball bearing is damaged

(highly doubt it) then that could well be your problem.

Ignore all of the above if the gearbox won't stay in 4th even if you hold in there all the time.

My best guess would be the 4th gear synchro hub has collapsed but could be literally anything on 4th.

As ScoMr2 said, drop your oil and if it has metallic bronzy bits in it then its time to replace the box.

Hope that helps.
