It is hard to tell from the pictures what exactly is going on with your davit seems like more that just the winch was damaged. One point to be made which is apparent in both of the posts is that there is a distinct difference between a winch and a hoist. If you use your davit to lift dead weight it should employ a hoist which has a brake suitable for stopping and holding dead vertical weight. Hence your "crying" when lifting and holding.
A winch is designed and rated for moving a rolling weight over horizontal surfaces like pulling a car or loading a boat on a trailer. A 5,000# winch rating is not the same as a 5,000# hoist rating.