The model is L2501. It is also a 4WD, not HST.
What do we do of removing the PTO shaft doesn't work?
As Dan (TheOldHokie) replied in is post, start with disconnecting the tiller which will tell you quickly if it's the tiller that is bound up or a problem with the tractor. Otherwise it is just speculation.
I will also suggest this.
If after removing the tiller and PTO shaft you still have a problem with the tractor you will get much better responses if you share information such as, brand new tractor or used, number of hours, any past history as far as mechanical repairs.
What exactly happens when letting out the clutch, does the tractor not move and tries to stop or stall the engine? Are you doing this with the pto lever engaged or disengaged? Does it make any difference which gear the gear box is in? Forward or reverse.
All that being said, first thing is remove the PTO shaft and isolate the tiller from the problem.