The 750 is a dry sump system.
A scavenge pump fills the oil tank.
An oil pump drains the tank and distributes the oil about the engine.
If it is not circulating how would you still have oil pressure and no oil light?
On to the shifting issue...
Ok, I am NOT the expert on CB750s. Particularly the lower end mechanical stuff. I have never opened one of these up. So, stop reading if you wish.
But, I have looked into the Shop manual and studied the trans parts pictures. It doesn't seem too different from the 550. With that in mind...
All my 750s clunk much more than my 550s. But, they do go straight through neutral to the next gear, unless I short stroke the shifter lever. They don't "find" the next gear on their own with a quick nudge, you have to mean it. This is true for the 550 as well. Certainly finding 1st from neutral makes a small clunk on the 750, but there is no lunge or lurch from the bike. On the 550, an RPM blip with the clutch disengaged helps the clutch disc overcome any lock up tendency if the bike has been sitting for a while. Then going into first is pretty much noiseless if you wait a few seconds for the trans parts to spin down.
A dragging clutch leaves pressure on the gear train which resists any change of position. The shifting components then take extra wear in order to overcome this pressure on the gear dogs from the dragging clutch. This accelerates wear of the shift drum, shift drum pins, shift forks and engagement slots for the shift forks. If you are grinding "gears" you are wearing off the engagement dogs rather than the gear teeth themselves. Anyway, when all these parts wear down enough the play increases so that gear dogs aren't fully engaged while trying to shift cause the lever cannot impart full travel due to worn components.
Slipping clutches are usually attended to straightaway. Dragging clutches are often ignored as they are only annoying during stopped motion of the bike or when neutral is encountered. However, dragging clutches advance transmission and shift component wear, which the next bike owner has to seal with.
Towards Ron's complaint;
Hanging in neutral says dragging clutch to me. Chartering during engagement say the same thing.
Taking two tries to the get past neutral in either direction says to me that the clutch has been dragging a good long while, and probably worn out trans shifting components.
IMO