Generally the aluminium frame is stapled to the timber reveals and is installed as a complete unit.
From the look of the era of the house I would suspect old OB hardwood framing which was green when the house was built and would shrink as it dried.
As the timber reveals are only relatively thin and fixing was by nailing the verticals into the hardwood frame, the shrinkage distorted the reveals and the attached aluminium frames and is likely 90% of the reason for the window gaps and not functioning.
The timber reveals are not a suitable frame for mounting new glass too. Remove the complete assembly and replace with a complete new window assembly that includes new reveals.