I am having the same problem on two extensions. Both are using M7208 handsets on a Meridian system.

When the handset is plugged into the handset jack and taken off-hook, the station goes straight to speakerphone and can't be taken off of handsfree. If the handset is plugged into the headset jack then the handset works, but the hook doesn't work and a line must be manually selected and the RLS button must be used to hang up.

I copied the configuration from another extension but it didn't make a difference.

Any help is appreciated.