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Replace the tumbler assembly, it is broken.
replace the ignition, the spring controlling one or more of the lower wafers in the half of lock is broken causing gravityto pull them into the wrong position making the lock inoperable.
Next to its broken Cv joints
I don't believe so , the 1.6 liter and 1.8 liter engines in a 1996 Toyota Corolla are NOT interference engines
remove the ignition tumbler from column and crank it with a insulated handle flatblade screwdriver if the ignition is located in the dash remove key tumbler by inserting a small pin in the hole located above the key hole and it will pop out using a screwdriver and turn it over that way
the tumbler is broken..the slit it goes into. the key ignition is messed up.
It might be a broken gasket.
1998 model year corolla has a timing chain and does not need to be changed unless it is making noise or is broken
Remove the plastic cover to access the assembly that holds the ignition tumbler. Then find a hole offset but underneath the tumbler on the same assembly. Stick a firm thin pin of some sort into the hole and press the release pin. It should slide out easily.
I would recommend J B Weld or Araldite for this.
You might have a broken or worn transmission/engine mount.
Flush the lock with a lubricant. Use the handle of the broken key as a guide. Find a thin wire and stiff it along the sides of the broken key part. Hold the wire in place and remove the part.