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Looks like everything is being run on DC in the diagram but the black wire from the regulator shows no connection. Very different than how the Lifan 163 FML is wired on my bike. The regulator is different too but may be the same internally.
I suspect that the DC output from the regulator is insufficient to power the lights and that going AC on the lights will solve the problem. Could the black wire from the regulator be regulated AC output?
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