Need help to identify this part

Of course, it is always possible that it has absolutely nothing to do with that engine. We used to have endless fun putting a couple of extra parts in a box that had a stripped down engine or gearbox in it.

Cruel, but funny.
You sound like my first boss at the shop, he mentioned doing things like that. Like, say putting an extra needle roller in a box of parts for a transmission where the planetary gears run on loose needle bearings! He never did it to us guys but think he mentioned that to keep us on or toes!
 
Whatever it is the part has obviously been replaced and that is the original part, or a part from something else, that has probably been rattling around in there since the cover was last off. What's curious is it is obviously a riveted pin, obvious by the slight hole in the end and signs of previous peening. The length is a bit on the short side, looks too short for the back of the clutch basket and also too short for the selector shaft. Perhaps a part from something else that has somehow wound up in there by accident. Whatever it is, if everything else behind the cover is in place, then it's a part for the unknown parts bin.
found it finally. The Stopper Lever Ass'y
 

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Found this while picking through parts today. Jim got it right. This is the backside of a shift drum stopper lever assembly. The rivet has the tell-tale peening hole, as seen in the OP's original pics. Everything else is right too, such as rivet depth. The shift shaft rivet does not have a peening hole.

The question now, is how the OP's failed rivet failed. It would take a lot of force to pull that rivet out. I think it would be hard to do if you tried. In use, it seems like the forces on that rivet would be sideways, not axial.
The correct answer!!! Found the rivet, but never found the washer
 
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