Hello everyone, I know it's been nearly two months, but for anyone that might have been in the same issue I was in. I appreciate everyone's help on the forums.
The 1976 XS650 is finally running.
The small points cam was flipped around backwards. I had uninstalled it, and reinstalled in multiple times, putting it back the way I found it. I assume that's why the previous owner could never get it running.
I noticed it because the new points I had installed on the bike started to wear quickly on the left side from all the engine rotations. Noticed a bur, and that the point wiper was not completely contacting that Point Cam.
Flipped it around the CORRECT way, and it fired up without issue.