...To narrow down the are to search, unplug the wire bundle coming up from the stator. A large plug. Check for the short from the green wire in the stator side of the plug. If it shows the short there, the short is between the plug and stator.
If it doesn't show the short it's between the harness side if the plug and the reg/rec.
This cuts the search in half.
The short can be in the sprocket area as mentioned or on the stator...
Excellent isolation test, Leo. Here's a pic of my old alternator and main wiring harness, unwrapped to reveal the regulator wires.
View attachment 58973
The green wire in the main harness, going from the big plug to the regulator, can be seen. On the early bikes, it just loops inside the main harness, and doesn't go very far.
My alternator harness, however, has seen better days. About 2-3" down from the big connector is a seriously chafed area, with exposed wiring. Chafing was caused by vibration rubbing against the downtube's wide nylon cable tie.
From there, about halfway to the alternator, at the lower/left bend, is another seriously chafed area. You may be able to see fuzzy insulation stuff coming out at that bend. That area wraps around/behind the sprocket area. Age/heat/hardening and vibration chafing is involved there, too.
That alternator and harness were pulled from my other XS1B back in the late '70s, boxed, and been in there since. That's just after a few years of being in-service, and look at the degradation. No telling what the internals of a 40 year old harness may look like...