I'm in the midst of re-installing my motor in my frame.
My motor is now "in gear" so when I turn my brake drum / wheel, the crank turns as well. However, when I press on my clutch lever (red arrow) manually, my wheel / crank continue to be engaged.
I would have thought that they would disengage when the clutch lever is pressed. But maybe the motor should be running, oiled, upright - I don't know.