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This is usually related to the mechanism that connects the shifter to the ignition key and steering column. I've been working on the same issue, and 1 of 2 repairs seem to be the norm.

As a short term fix you should see if you can gently pry the shift interlock button upward with pliers or a pair of small screwdrivers. Obviously be careful of damage. On this same tack, especially if this is a short term fix, you can remove the center console cover and clean, lubricate, and generally tinker with the mechanism looking for dirt and debris.

If this isn't a fix then the key cylinder generally needs replacement. This is a dealer event, but not too costly for labor.

Avoid heavy key rings!!!

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Q: 1997 Volvo 850 wagon key stuck in ignition?
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