Rear wheel on stand runs smoothly?

BBS360

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I've been meaning to get a video to illustrate but then I took the shocks off to paint... In the meantime:

I've been fighting with power issues at low speeds for as long as I've had the bike.
Carbs have been investigated and their adjustment is ongoing but there seems to be another issue.

When taking off from a stop in first gear the bike loses all power. No matter how high the bike is revved as soon as the clutch is let out it bogs down, barely gets going, starts shuddering, and usually dies partway through the intersection.

Had it on the center stand the other day. Turned it on, put it in gear and let the rear wheel spin.
After about five seconds of spinning freely the whole bike starts shaking violently. Rear wheel shakes, seems to stop for a split second and starts again.
Significantly the carbs shake relative to the engine as if it's occasionally backfiring into them.
I put it back in neutral right away but the behavior would happen every time it's put in gear.
Happens in higher gears too.

Makes me feel like somehow the timing goes way off when in gear but I did recently set the timing with a strobe and watched it go to full advance when revved up in neutral.
Also recently installed a couple new valve adjustment screws and reset all valve clearances. Other than quieting the valve noise there was no significant improvement noticed.

Easy question: the rear wheel should spin freely and smoothly when on the center stand and in gear, right?

Any thoughts on the rest?
Transmission damage? Ignition?

Checked chain tension and rear wheel alignment. Alignment seemed to be a bit off but again no improvement noticed after adjusting.

BTW, this is for the 360 with points ignition.
The 400 hasn't been on the road yet but seems to run much better.
Might abandon working on the 360 at all unless I can figure this out.
 
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