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Freespool is just that, a disconnect from the driveline. The brake is attached to the end of the worm gear so when you push the clutch in, it stops spinning. Some argue its to hold the load, but I doubt very much you could spin the winch from weight on the cable(lets see how many people that...

Hook up to something and test it out. Its either in the winch or the pto. If the drive shaft stops spinning, its the pto, if not, its the winch.