Dishwater just drops soap packet

We just purchased a house with an old Tappan 61-1127-10. We’ve tried using it several times–we can hear the water running thru it, but at the end of the cycle the soap has just dropped out of the compartment and is undisolved. We’ve tried gel packs, liquid and powder each with the same results. Previous owners swear it worked just fine.

Here are your parts
Replacement parts for 61-1127-10 models | AppliancePartsPros.com

Take note of where the spray arms are, then start a wash and open the door part way through to see if they are actually rotating.

Check that the holes in the spray arms are clear.

Check the fill.
I am not sure where this unit should fill to.
They usually fill to just under the heating element.
Often if it is a low fill issue, you can hear it, the pump will growl because it is sucking in air.
You can check this by adding a quart or two of hot water after each fill during a cycle. If it now washes OK then I would check the screen filter on the input side of the water valve for a partial plug. If dirty clean it. Do not permanently remove it from the valve as it is there to keep crud out of the valve which could hold it open and cause a flood.
Just be careful to not over fill it.

Check the water temperature, should be a minimum of 120 degrees F.