Damage from the freshly built Metra 65 engine.
The clutch pads themselves are showing some minor wear from only about 6 miles of use. Obviously way too much slip. I knew the clutch was engaging super late. It was revving out like a chainsaw engine and grabbing hard. The low end was fantastic, but I knew they springs needed to be adjusted. The arm that sheared was probably engaging first and taking the full strain of the clutch which caused it to break free.
Prior to the clutch exploding, it wasn't fully disengaging causing the bike to insta-die at idle and pushing the bike forward, not running, would cause the clutch to chug-chug-chug without even pulling the starter clutch.
I suspect something else is the culprit here as this is the second clutch that's given me problems in the past couple of days. Possibly some issue with the main gear which seems to be making more noise than it should, although no teeth are missing and it seems to be in good shape. Or possibly a spun bearing on the crank since I'm using the crapped out Rito that spun a bearing previously (stator side). I used some bearing compound which is designed for that sort of thing, but it may not have been enough or the crank is just too far gone.
I'm going to install another stock 2-shoe with stock springs and see what happens. If that doesn't work, I'll be time to crack the case again, and replace the crank.