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a harley transmission is designed so that neutral is more easily found from 1st gear, not 2nd.
If you think the switch is busted, it is on top of the tranny, easy to access and test ...... the other sensor is for the speedo, it has an offset fastener.
if the trans switch is bad it should start by pulling in the clutch just like normal , if it don't keep looking . by the way is your kill switch on or off
That switch is just for the neutral indicator light if I remember correctly. I had an 01 RK that a few times it jumped when I hit the start button with it in gear. You got some other issue going on regardless, that's probably battery related.
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