Singer sewing machine 132K6 top thread problems

I got an old Singer sewing machine 132K6 recently. It has not been used for over a decade at least and apparently full of dust and rust. I have cleaned, removed rust and lubricated moving parts. When I plugged in outlet, it works! But there are a couple of problems.

The needle can not pick up bottom thread when sewing a fabric. The rotary hook’s timing is adjusted and can grab the bottom thread. However when I tried to sew fabric, the needle won’t pick up bottom thread. Please see the attached pictures.

Another problem sometimes the upper thread was broken like it was cut by a knife.

Need help

Any help and advice are appreciated.