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I would check the 65-amp fuse under the seat next to the reverse relay. This is the 65-amp speed limiter fuse, it provides a ground for the reverse indicator circuit.

I know of a case where it looked good and continuity checked ok but when power was applied it would not let full voltage through.

In this case, the bike would back up a few inches and stop, if you pushed the reverse lever down and pulled it back up, it would back up a few inches again and stop.
 
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