did you use the original mount block instead of the one that came with the points? (the plastic block that the square notched bolt goes though for the wire connection). They may call those OEM, but they are not the same as the originals. All I see is what looks like the "spring" steel looks like its angled and maybe not set tight enough in the block. I also see that you have the kill wire exiting rearward which usually points towards a throttle controlled kill switch, so you want to make sure that is disconnected from the throttle control and definitely not grounding out, same goes for the wiring from coil/condenser to points, If that OG crimp washer that the C/C wires go to is touching the stator body in any way they will ground out. I would remove the wires, tighten the post down (it has to be tight to get the right points setting and operate correctly) recheck for .020 and use an ohm meter to make sure the points are closed (making a connection) through the rotation until it hits the ramp. Then again with the ohm meter make sure they remain open all the way up and over the ramp.
Also you stated you reglued the magnets, If you got the polarity wrong I would imagine it would mess up it ability to spark, also if they are reglued far enough off it would effect it ability to produce spark.
If you do in fact end up removing the stator assembly, before you crack the bolts free just make some match marks on the top ear and the top lug like they did in the old days, Don't use the info posted for timing if you go that far, that particular mini bike service book I took that from predates HS50 engines so the timing setting (.035 btdc) is not there and those are pretty lax setting they give anyway