Re: 1985 GT 150 Shift problem.
That engine has a specific height measurement for the shift rod that goes down into the lower unit gearcase. The setting is critical for proper shifting into/out of gear. If the lower unit was ever off for service, such as a water pump impeller, the shift rod height may have become altered slightly. Sometimes you can compensate for slight mis-adjustment at the top of the engine-in the lower cowling. If the shift rod height is just too far off, you can't adjust it on top. You may need to pull the lower unit and check/correct the rod height measurement. The shift rod screws/unscrews into the lower. My 86 manual calls for a 22 1/16" +- 1/32" height from the top deck of the lower to the center of the hole in the top of the shift rod. Probably the same for your 1985. It's very unlikely the gear face and clutch dog are worn in the reverse positon.