From your checks, lets assume (for the moment) you do have continuity in all the required circuits since it appears so. We will further assume the points are working properly since points do not usually go bad instantly, but degrade slowly. We are left with good circuits, but not enough flow/amperage. If your battery is showing 12 volts, that level of charge is a DEAD battery. How old is that battery? The battery should show a minimum of 12.5 volts and preferably something around 12.7 or 12.8 depending on the type of battery you have. You will need to have at least 12.5 volts in the battery in any event. Once you have a charged battery, I want you to do a couple of things. Your bike should have an off position for the headlight. Turn it off. If you do not have an off headlight position, open the headlight shell and unplug the headlight. Next, the orange/white lead in your harness that connects to the + terminals on the right and left coils is a single wire in the harness that has a "Y" pigtail on the end that allows you to power both coils. Disconnect the two harness orange/white leads from the coils. In their place, take a 4 ft length of 14 guage or larger wire and make a "Y" pigtail for one end. connect the "Y" end to the coil + coil terminals. Connect the other end directly to the battery + terminal.
This will eliminate any voltage drop the might possibly be in the wiring harness or switches and bypass any voltage drop caused by the ignition switch. Once the above is done (and you have a charged battery installed), Remove the #4 spark plug, reinsert it into the plug cap, ground it against the engine, turn the ignition switch on, and bump the starter. You should see the plug spark. Then reinstall the #4 plug, connecting the spark plug lead/cap. Now remove the #3 plug and repeat the process to be certain you have spark on it also. If you have spark on 3 and 4, then you should have spark on all four. If you have spark, the bike should start and run normally. We would now know the problem is not in the ignition system, but in the wiring and switches.
Let me know what happens and we can take it from there.
E.
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