Does this make a bit of sense?
I went through the harness disconnecting things one at a time. Long story short, everything in the headlight can was disconnected, horn, brake light switches, coils, points wires, tail lights, turn signals, instrument clusters, etc. Problem still persisted. I unhooked the alternator connector, oil pressure switch, neutral switch.
I removed and checked the two ground connectors, the large one on the left side of the engine and the smaller one up by the seat latch. All good there.
Then I unhooked the starter solenoid and removed it, problem went away, I could turn the key switch on and still have over 12 volts.
I don't see anything in the diagram that would explain this other than an internally shorted solenoid.