Hello,
First - I want to say
kudo's to you for not immediately thinking "Rehome" and for actually WANTING to work things out with our bird.
Second - I want to say...I am in NO MEANS a bird expert, not even close, but I have some experience with the birds I have and have had and, so far, I have a good relationship with them all.
Reading what you wrote, 2 things came to mind that I'd do first and foremost if I took in this bird.
I definitely would clip the wings, as hard as it is...I know...I'd definitely do it. Especially if you want to allow the bird out.
2nd - I'd back totally off from handling this bird for a while. Basically start over, sit by his cage, read to him, talk to him, read his body language and see how he's taking it in. Is he totally ignorning you when you talk to him, does he show interest in your voice. Does he move to the other end of the cage furthest away from you, or does he try to be close to you when you talk to him. When you sit there and talk to him, does he tremble, or sit calmly.
Eventually you'll be able to open the cage door and let him out and that's where the wing clipping will be so beneficial to you. He won't be able to fly frantically around the house and evade being caught. Wing clipping also "humbles" some birds who've become quite high and mighty.
You have to be the one to rebuild your relationship and trust. It's going to take time, and probably lots of it.
Another option if you don't want to wing clip, is what I've done with my pigeon. It was a feral pigeon in the big city, injured. I brought it home with the intention of releasing him when he was healed, but when I tried to release him, he refused to go. So he lives with me.
I let him out all the time and he flies through the house and roosts on all his favorite spots, he flys and lands on me and loves to be with me...until he knows I'm trying to catch him for bed.
Well I solved this issue by buying him a flight suit! It totally works! I put it on him when I let him out, he flies around dragging his leash. Of course he's always supervised because the leash COULD get caught up on something...and when I want to put him away. I just grab the leash, he can't fly away from me, and I put my arm out he lands on me and I take off his flight suit and put him away.
NOW...of course...pigeons don't have the bite of a parrot...so of course training your parrot to accept wearing a flight suit could be a whole can of worms you don't want to open
It really sounds to me like your guy has become king of the house and needs to learn some manners. Of course, parrots don't "train" the way dogs or horses do, they definitely add a huge challenge to building relationships.
But I truly believe you will be able to come to some kind of terms with your guy, just be patient and start over, completely over...like if you've never known this bird before and you just brought him home.
That's what I'd do.
I took in 2 cockatiels last August...they were horribly abused, starved and neglected. After several weeks of letting them settle in, sitting by their cage and talking to them, singing to them, feeding and changing their water... just simply being there with them I decided it was time to clip their wings so they could be out and some what "contained" while learning to be hand tame.
How did I know it was time to let them out? I just "felt" it, they were creeping closer and closer to me when I'd talk to them. They quit being frantic everytime I opened the cage door to get their dishes. They watched me with interest in what I was doing, they quit trembling everytime I walked to their cage....things like that.
Their wings have grown in now, and they haven't been a problem. They are not close to being fully tame yet, but they will climb up on my spouse or I when we have them out with our other tiels and look at us, look around...and you can tell they are still very unsure about this human contact stuff...they don't want us to touch them at all, THEY decide on how much and what kind of contact they have with us, but they've come a LONG LONG way since they day they first arrived at our house.
Since they are still nervous with our hands, we use a stick that they readily jump up on and let us put them in their cage that way. However, if they started flying around and making it difficult for us...I'd not hesitate to clip their wings again.
Thanks so much for seeking help, be patient, step back, take a deep breath and start over. And know that all of us have made mistakes and done things we wish we didn't. You are absolutely not alone here
Toni