Long time lurker. First time poster.

I'm working on a 1985 YTM200ER Yamahauler 200. The previous owner messed up the electrical wiring. I used a schematic and pieced it all back together. It now starts up in 1-2 seconds and runs great, but the MAIN SWITCH (the one that uses the key) is really messing with me.

The main switch has three positions: OFF, ON, and LIGHT

The OFF position works.

The ON position allows the engine to be started, but as soon as the engine starts running, the headlight and tail light turn on. Is this normal or is the headlight supposed to remain off until the key is turned to the LIGHT position?

Lastly, when the engine is running and the key is turned to the LIGHT position, the light remains illuminated, but the engine shuts down and the STARTER BUTTON does not work. Is the starter button supposed to be able to work when the main switch is in the LIGHT position?

Obviously I have a few electrical gremlins to chase. Any answers or insight to my two questions above will help with my troubleshooting. TIA.