I just found out my new computer will play AVIs!
I think you are right not to operate the machine with that noise.
To me, it sounds like intermittent gear dog interference in the transmission, or perhaps a broken/ cracked gear.
If the former, you should be able to find a gear selection where the noise disappears.
Note the noise under the following conditions:
- Clutch in / clutch out.
- On center stand, clutch disengaged, try all gear selections. Are there any where the noise goes away?
Does your clutch disengage completely?
If you can find a gear that selection where the noise goes away, then perhaps you have a bent/worn shift fork or shift drum issue that does not center the dog sliders between engagement slots. The clacking would be the slider dogs hitting the slots. The noise would go away when the dog was fully engaged.
If it happens regardless of gear selection, then I imagine main gear meshing issues, loss of gear teeth or foreign matter lodged between gear teeth.
I suspect you will have to remove the engine and separate the lower case to correct the issue. Pity, as the bike looks like new.
I've got a parts bike in the back yard that makes similar but louder noises anytime the engine is run. I bought new transmission guts for it. But, it is yet another back burner project in waiting.
My condolences.