Thanx Ron!! It DID pop out but not without some effort. I slightly damaged the housing and now the valve leaks a bit but at least it turns freely. Any idea what I could use to increase friction and tighten the spigot a bit? I could jerry-rig something but sure hate to further damage the housing.
The valve does snap in to seal. With the thin film of Vaseline, I am able to get the turn-part to snap back in to seal good. Vaseline is safe for drinking water.
Be sure it's all the way in to a "snap".
Adding for reference, This is the type I am referring to. Not the entire assembly, just the spigot itself.