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Why does it appear that you have an extra small red lead attached to the large starter post on the solenoid? What is the little black wire hiding in your hand? It looks as though you don’t have anything connected to one of the small solenoid terminals…These little terminals should have a ground on one side, and switched B+ on the other to power the magnet to connect the two large terminals so the starter has B+ to power up…
No, the magneto does not get any B+ power from anything at anytime… I think you are confused because the key switch has a few separate circuits that are not connected in any way….
There are the B+ terminals on the key switch that handle the starter and choke functions.
Then there should be two “M” terminals that are totally independent…These are not really “ground” terminals, and should not be used for grounding any accessories. This engine is shut off by connecting both sets of points together which cancels spark on both cylinders….So, the two “M” terminals in the key switch are connected together when the key switch is turned off to short the two sets of points together and kill spark on both cylinders. Again, these terminals are totally independent from the other terminals on the key switch which handle B+ functions…