Apple had a recall on the display assemblies of this series which I think has now ended. What happened is the press-fit pin into the aluminum lid failed to get secured so the pin which needs to be anchored in the lid is floating so the clutch spring which grabs it to gain the needed friction to hold the lid up is not able to do that.
Now that we understand the problem what is the solution? At this point you could see if Apple will still honor their recall on the defective lid assembly (was a limited recall). Otherwise its time to get a new display assembly as there is no means to fix this. Trust me I’ve tried!
Another approach is to get your butterfly keyboard fixed as its still under warranty for that (assuming you can argue you have a bad key or two) as Apple will then replace the uppercase to fix that and the QC folks will reject the repair as you also have the display issue and they will then fix that as well (Apple has a zero defect rule so any other problem found is also fixed as well under the first repair).
I know this is somewhat convoluted, fixing a different problem to fix this. This tends to be more effective way.
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