Cleaning and oiling are usually a must on these, very few are newly serviced. They take the same needles as your 201, and most domestic machines. Double check that you have the correct manual (mix ups have happened) and needle needs to go in the correct way.
If you have a 28, it has a lobe under the tensioner, it releases thread. A 128 has auto thread release in the presser bar lever. As correctly point out; make sure the needle is all the way up when you pull the fabric away. It can have something to do with cleaning and oiling, if it's very messy parts gum up. Can the bobbin thread be in the wrong route some how? Cought in a burr or shuttle some where?