I do not have the bike or engine you have but perhaps if you can post photos of where the wires originate from within the engine, perhaps someone can help figure what they are for and where they should go.
I like your idea of a “rust rotation” and running it as it is. That is what I have been doing for years with motorcycles and now with motorized bicycles. I like “unrestored original”. See my post on Cyclemaster and Travis Bike Motor in this forum.