well done on posting the pictures, the comments arent all readable though you should comment in the post above or below the pics so it can be read
are they fuses on the starter relay?
Try to eliminate the ignition switch as the culprit.
is there a brown wire on the flasher relay? as a temporary measure unplug this and connect the relay direct to batt+
Greetings john, the little XT is looking great does the arrow exhaust improve performance, I guess it does they're not cheap
Oh I've had no less than 2 bikes since 1982
at a guess it will be posn 2 on the key for lights and the headlight may need the engine running, not 100% sure
maybe posn 3 you can withdraw the key? and this could be a parking light... its not a DT175E though