As I'm sure you've discovered, retro, it's a bit fiddly combining mains and gravity feeds. It wouldn't take much of an obstruction to mess things up.
The diverter is stiff. That suggests a partial bung-up inside the mixer body. It's usually a fairly simple job to dismantle the mixer and clear it out. It may well be hard water scale.
Clean, and re-assemble with new O-rings if there are any.