So I have the bike apart to try to resolve this. The first possible issue is whether this connector goes anywhere. The picture isn't great, but the wires running from it are blue-white and pink. I think the blue-white has something to do with the signal operation, but I'm not sure what. It wasn't connected to anything when I took the bike apart.

If it's fine how it is, what should I check? I've read some posts about the CDI failing, could that be it? Thanks.