Welcome, from another recent additon to this forum.
The clutch lever wires are part of the start enable circuitry.
Blue/yellow from start relay to switch and then black / blue to CDI unit.
Also part of the start enable are the side stand switch (will kill motor if stand is down and dropped into gear)
If not in neutral, starter will nor crank unless clutch pulled in.
Since yours turns over/cranks, then the kill switch is on and the start system is enabled, but may not be getting spark.
Are you getting flow form the petcock?
Does the bowl drain screw (if you can get it open) put a puddle on the ground?