Could it be a bad Nutral Indicator (P/N 33926-06B)? It's a $15 part that can be replaced if you suspect it's bad. I presume after the bike started you let out the clutch lever to confirm the transmission was actually in neutral.

On a side note, I thought you needed to pull the clutch lever to actuate the clutch switch in the clutch housing in order to start the bike.... regardless if it's in neutral or not. I guess I never tried to start my bike without the lever pulled in. I'm on a 2019 Street Bob, by the way.

 

 

And no if bike is in neutral you do not have to engage clutch.

 

Same issue on my 18 sport glide. Neutral light will come on after riding for a bit and going into neutral though, but not before the bike is fully warmed up.

 

 

 

By any chance, have you replaced your grips or levers? When I put slightly oversized grips on may 2018 Heritage, the clutch lever would not completely disengage the neutral switch. I had to shift to neutral every time. The dealer ordered a replacement switch under warranty which did not solve the problem My tech fixed this by installing a small shim in the lever which allow the switch to disengage. Problem solved.

 

Do you mean the clutch interlock safety switch? Pretty sure the neutral switch would be on the trans.