You're on the right track... just not deep enough into the engine yet.
The bendix drive does not come out with the starter. You have to remove the flywheel cover and go at it from the front. Yes, you have to actually remove the flywheel itself to get the bendix out. Incidentally, do not test the starter (by spinning the starter motor) while the flywheel cover is off. The forward end of the bendix shaft is supported by the cover.
Good luck.
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