I think this cir clip fell off, everything looks good

some things look good and after reassembling it would still not work..
you need definetely a new strong circlip and new spring... i added a wascher for more compression to the ratchet. but watch out, that the ratchet can still moving free on the shaft by the return to top. and also take care to the marks on the ratchet and kickstartshaft. thats important for assembling and the function...
to your clutch problem:
some times when bikes are sitting longer unridden in the garage, it could happen, that the clutch plates are like glued to one part and then the clutch could not work, also if all other parts of the leverage work in the right way.
clean the plates from the old oil, reassemble it and i rather to motul transoil 10w30 , that i use over years without problems. i tested many oils to find the best..
