Almost looks like what happened to me. If while sitting you can shift into first but not back to neutral, the shift linkage is adjusted too long. Took me three case splits and bothering a friend for three weeks to discover it. In a nut shell the linkage hits the inside of the case and cannot move the pawl far enough to upshift. Possibly in the last split it could have become mis-adjusted. Sorry to say but the only fix is another splitting if I'm right. I hope I am wrong.
87 vn750at least that is what the frame #'s say
"Squirrel Bike" aka Jersey
Rat bike with a good PR agent
shaved and coastered
2 into 1 exhaust
rear 170 and front 110
custom dash with voltmeter
Recovered seat without "butt hammers"
More to come
Praise to the Parts Goddess Crobins for needed things
When someone tells me "Great minds think alike" all I can think is "You Pervert"