Hi Union I have just read your post again,
With the ignition switch in the OFF position the headlights, sidelights will not work, nor the horn or indicators, brake lights and the clock displays will go out, that is the way it is designed to work, if the bike is left for a while the battery will not go flat should the light switch be left on.
One thing that does surprise me is that the Hazard lights do not work with the ignition switched off (These Japanese designers are not as smart as they think)
IE: Ignition OFF ALL OFF.
There is a position on the ignition switch passed the steering lock position that will put on side lights with the ignition turned off, this is for night time parking in a road, but as said earlier all other lights and instrumentation is designed to go off with the ignition off.
I have to admit though as to never managing to get the key to turn to the parking light position on the ignition switch.
But my guess is that connector block is your problem, do remember to disconnect the battery before you start cutting wires.