In no particular order
Welcome to the forum, The XS650 and motorcycling.
Take the safety foundation course.
I'm confused there were no 76 XS650 Special Edition So what bike do you have? This is important for you to know what charging system you have. Again pics help. one with the LH side cover off so we can see what regulator recifier you have. and one with the round LH cover behind the shift lever off so we can see the stator and brush assembly would be most helpful. A VOM
is necessary. they can be had for $5.00 to $500, a cheap one will be OK for charging 101 and would have found where the brake light problem was. Almost as useful is a home made test light, any old turn signal or taillight with a a couple of feet of wire and some alligator clamps will track and show 12 volts and create enough load so that by the bulb brightness you know if you have a strong current path. They sell those neon test lights which are OK but a home made one with a 5 or 10 watt bulb is actually better.
DO NOT run the bike until the charging system is working as designed. More guys have turned small problems into big problem$ doing that than any other single old motorcycle trick.
Based on your sulfur smell you have an OVER charging condition. That will toast your battery (if it hasn't already) and burn out other expensive charging system components.
Mis-wiring, wrong components, bad grounds or a stuck voltage regulator would be the root of an over charge, not a bad stator. A volt meter will show what is actually going on.
Old motorcycles are romantic but many do not realize WHY they are romantic. They require a commitment to know and understand their systems and foibles. Fail to do this and you better have comfortable walking shoes.