Another pic with the NDB on the double arrow with different switch position. Can also hear the morse of the NDB. So seems to work fine. The thing is just getting the freq set correctly which is fiddly.
The old school ADF controllers are not that well suited to MSFS. The simulator also doesn't support ADF tuning very realistically, you need to have the frequency tuned exactly before any signal is picked up. At the moment the tooltip on the tuning knob is pretty essential for tuning it accurately.