Except moving the pawls axially relative to the body by loosening or tightening the lockring won't affect the functionality of the engagement pawls in any way. You'd have to loosen the lockrings so much that it comes off and all the bearings fall out before you move the pawls the necessary 1/4" to disengage from the body.
Most likely it took some time for the lube to loosen the dried gunk on the inside. Faster to use a dunk-tank and really soak the freewheel with solvent. PB-Blaster works really well for freeing up a stuck freewheel. Then drip heavy-oil through it afterwards. Some freewheels have seals at each end, so you'll need to take the lockring off in order to get solvent & oils into the innards.