[SCHMIDTY]

A couple things; remove the spark plugs prior to cranking the engine, place a pan under the engine breather tube area to catch the sumped engine oil, don't add oil to the oil tank until after evacuating the sumped crankcase oil. Keep your fingers away from the starter drive, use a wood dowel or something to manually actuate the starter drive. Good thing the bike came with that CV carb !

 

[SCHMIDTY]

As much as that starter shaft is moving around I'd hazard a guess the needle bearing in the shaft housing is trashed. The chain cover needs the 9063 bearing and the shaft housing probably needs the 9062 bearing.