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Mower: a Murray self propelled mower.
The issue is the drive wheels will not move.
Model 917.376742
The parts breakdown is at the link below:
https://www.searspartsdirect.com/model/2p7e46hvs3-000247

The mower has a number of issues:
The cables for drive and start are both broken. The drive belt is flabby. The transmission pulley will turn in one direction. In the
other direction it turns about 3/4 of the way then will not turn after that.
I took the transmission bottom cover off and saw that the when the worm turns one way two other gears do not engage.
When it is turns the other way 3/4 it engages two gears. On gear gets pushed into the other as the worm turns. When they lock
together the turning stops. Something is frozen. I think it is the axle to something else that is frozen.

At that point I was stuck so started taking the wheels off. After I took the wheel nuts of neither wheel would pull off.
I spread the back wheel cover to look inside. There was water and dirt in there. The water has drained and I got most of
the dirt off. I thought the dire may be between the wheel gears and drive gear and locked. I hit the drive gear a few time
with a screwdriver and hammer but it would not budge. I did that on both sides.

From the drawing it looks like there is nothing holding the wheel on other than a single bolt on each wheel. The way the
wheel acts is like the hub is rust frozen to the axle. But I think the hub is plastic. I can't see a metal sleeve in there and
don't see one on the drawing. So I don't know why the wheel just does not pop off. Being frozen is a puzzle.

Both are frozen solidly. Give that they should come off easily I think I have missed something. Any help would be
appreciated.

Yes they are rusted on because you have not removed then every couple of seasons, cleaned & lubed them.
So loyts of you favourite goop, as much heat as you dare and a similar about of brute force.

bertsmobile1,
I think you are right. I just found a video of a guy changing a Craftsman mower wheel that looks like mine. His has a sleeve bearing in the hub. The hubs are probably rust frozen to the axle.
The mower is a friends. She does not have a garage so it was outdoors for years. She eventually got a cover for it but the cover did not cover the wheels well. The storage place was dirt so water and dirt got into the wheels. It also got inside the transmission case.

I put PB Blaster on the hubs this afternoon and keep doing that. Maybe by tomorrow afternoon the rust will break.

Any ideas why the wheels/axle won’t turn?

Nope.
Have never laid my hands on one