Its hard to tell from the picture, but usually on a 350x if the chain hits below the sprocket oil will come out, if it hits above it there is an air pocket there that shouldn't hurt as long as there isn't a hole all the way through the next layer of aluminum. I have 2 or 3 350x's with jb welded cases. It appears that the chain hit lower, oil came out so they JB welded them. I doubt they put a seam in, so now the cases are fused together in that one area.
Fill it up with oil, see if any comes out, if not I'd ride it. Also make sure the shifter moves freely, the shifing mechanism is just inside the cases in that area and if the aluminum gets pushed in far enough it could bind the shifting
parts, but I doubt thats the case. Keep an eye for any leeks and check oil level every time you ride, if a 350 is run low on oil its guarantee head/cam/cyclinder damage which is big $$$$ to fix.
To see if the clutch is bad its best to have it running. Drive it around and after you shift get on the throttle hard and see if you hear the engine revving up, but the wheeler won't pick up speed.