Dear bracurie
That relay with 5 prongs is what is called a change over relay on the electrical wiring diagrams for the AC conditioning system.
It uses the signal given by the ignition switch terminal T50 just to disconnect the A/C system during the cranking.
This relay will not affect in any way the operation of the starter (starter selenoid).
Your problem, as you already indicated that the starter engages when a positive signal is given directly to its port T50, is ONLY RELATED TO THE IGNITION TUMBLER SWITCH.
That part is defective, since internally has accumulated many dust, and the contacts on CRANK position are not doing its job.
Change the ignition tumbler switch or run a positive cable with an external push button to the port T50 at the back of the ignition tumbler.
Tumblers for w108 are not expensive, so better to change it.
Best regards
L.peterssen