Doors and Windows - New Schlage door lock

This summer I replaced the front door to our house. The old door was falling apart and wasn’t keeping the cold out during the winter. We purchased a new door that had a ¾ decorative window. After the door was installed I put in the new door lock. It is a Schlage Plymouth system that came with a deadbolt and a fancy door handle.

My problem is that every time we open the door the latch doesn’t come out again. We have to turn the inside handle a couple of times to get it to come back out so we can shut the door. I have taken the lock off several times to see if there was anything blocking it but when I put it back together I have the same problem. What could be wrong?
:wall:

Does it function ok with the latch plate removed from the door?

I will take the latch plate off tonight and see if it works correctly without it.

One possible idea:

If the latch is the 1" wide "drive-in" type, it's likely that you created a few burrs on the tip of the latch (the flat side) when you drove it in with a hammer. Filing off those burrs should make the latch operate freely again.