I was reading that the rear tire should drag and not rotate when pushing the bike with the clutch NOT engaged
When
clutch is NOT engaged, the rear
tire should NOT drag and the wheel should rotate freely. otherwise you will totally burn out and destroy your clutch.
Here below is how to adjust the clutch properly.
When adjusting the flower nut on the clutch, make sure that you have the clutch lever pulled in and locked in place. (Disengaged)
Tighten the flower nut until you can't turn the back wheel at all, from there, turn the nut counter clockwise a "notch" at a time until you get the rear wheel to turn freely by hand and stop right there and put the lock screw back in place at that notch where the wheel just starts to turn freely.
When you release the clutch lever, (clutch fully engaged), it should of course be totally locked up and at this point you should have it right.