In the process of restoring a 1983 Ironhead. Upper half of motor has been rebuilt. And rotates when in gear.

Had to remove primary cover due to broken clutch adjustement, cleaned inside the cover, then put the cover back together. Followed the factory service manual steps for clutch adjustment, and clutch lever adjustment. When in gear (with clutch let out), the drivetrain does not move, as it is supposed to. In Neutral the drive train spins freely. Now the kicker, when in gear, with clutch pulled in, everything is still locked up. The clutch does notseem to release, even though it does rotate and go in and out as it should by looking at it from the inspection covers.

Any suggestions?