When the handbrake is applied, it can be locked in a number of positions.
When the handbrake is released, the pawl engages one of the teeth, locking the handbrake in place. Slightly pulling the handbrake and turning the handle releases the lock, and the handbrake returns to the released state.
The pawl is fitted with an additional hardened part that reduces wear, but considering the age of your VW Bus and its many uses over the years, it's not surprising that excess wear has developed anyway.
With a worn ratchet, the handbrake no longer holds and replacement is the only option.
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