The clutch pedal in normally disengages the clutch and the clutch pedal out normally engages the clutch.
I missed that you had indicated you had a hydraulic clutch, sorry. It may be possible for the slave cylinder push rod to go out too far and stick. You should be able to check by observing the operation of the slave cylinder while the clutch pedal is depressed. You may need to restrict the travel of the slave cylinder if the clutch isn't installed.
