You need to pull the sprocket cover and check the actuating mechanism.
your probably going to have to pull the clutch cover as well to check plates.
The screws on adjuster should be lightly seated, not cranked down as tight as you can go.
If you cant get any slack with the adjuster done as I explained you may have the wrong cable fitted, Honda use similar cables with different length inner wires on many different models. With cable completely removed you should have about two and a half inches of inner wire showing, (I just measured a brand new CL350 cable, it's same as CB360 ones)
PJ
Just checked packing, the cable is for a CL360