I picked up a 1200 a year ago w/the same problem. Turned out to be a huge wad of mice nest stuff all jammed up into the flywheel.
Pulled the engine & removed the flywheel housing and pulled out handfulls of wadded up carpet mat'l.
Put it all back together, no more problems.
Is your return spring missing or broken? Spiral spline shaft cleran and lubed a little?
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