Okay, so this is weird.
I have no idea why this is happening.
I replaced the shift shaft and lever, and had the kid go to kick it over and take it for a test ride, and the kickstart shaft doesn't kick back, and was binding up. No problem I thought, I figured I missed the spring tang again. Pulled it apart and the tang was in the notch.
After some checking I find that the shaft is broke;
View attachment 32295
So I order a new one. New shaft shows up, and again it binds up.
I've had this thing in and out and the cover on and off at least 20 times in the last week. I've tried every configuration possible, including putting the plastic spring retainer and washer in backwards, and it still binds up when torqued.
And it doesn't just bind up on the return to normal position, it binds up on the downward kick.
Another shout out thanks to
@PALMER84ONE for the timely tech help!
But it still binds when fully torqued.
But I did find that if I left one bolt loose, the one directly under the kickstart lever, it would allow it to spring back, but I cannot for the life of me determine why.
I thought maybe the gasket was bad, nope, maybe something was obstructing (like the return spring) nope.
Weird for sure, especially since I never had an issue until I took it apart, worked fine for the last 8-9 months.
Left the bolt under the lever a little loose, kid took it around the block tonight and it runs like it should...