Starting a new thread here to focus on clutch portion of this thread, and hopefully get fresh eyes....
Tire dismount and possible clutch noise
So in follow up, I put back in the original clutch and here's what happened. I put the gear box in second, rotated a few times through a compression cycle, and then strapped down the clutch lever and moved through one cycle on the kickstart. The clutch was immediately disengaged. I then began to rotate the rear wheel. At first it rotated okay but with a small steady ticking sound, not the same sound I heard at coasting. That sound quickly but gradually went away and the wheel became increasingly difficult to rotate, eventually to the resistance I was seeing with the bgm clutch installed, and exhibiting the same noise I first started with, which seems to be in the lower end of the case, not in the clutch area. I did manual rotating this for a few minutes.
Pulled the cover back off, pulled the orig clutch back out, inspected, nothing strange. Though, and not sure it's related, I noticed that while in neutral if i turn the hub the Cush gear stays in place, if turn the Cush gear the hub will rotate.
Something related to disengaging the clutch is causing resistance in the rear wheel. I can't imagine this is normal but does anyone feel like testing this?