The first thing that comes to mind is to check you have forward and reverse correctly wired up (if it is three phase and you reverse a phase going into the machine, it will reverse the direction).
To me, the thermal cutout should be on the forward direction. After all, that is the direction in which it spends 90% of its working life.
Think of a plausible mode of operation in which it could overheat in reverse but not in forward.
The latching property also makes more sense in the forward direction as you want to press the button and it work until you press stop.
I can also see an argument for not having a latching mechanism on reverse operation. If you want the motor to run in reverse, you have to keep the button pressed. As soon as you release the button, it stops running. An analogy to this is the jog mode on a VFD.
There is nothing special needed to make the contactor latching. You just wire its output to the input of its coil, with a normally closed momentary switch in series as the stop switch.
If it is supposed to latch and does not, either a wire is loose/disconnected or the NC switch is stuck open.
A manual for the machine is available here: https://www.machinemanuals.co.uk/manual.php?p=104