Slave cylinder appears to be ok. I removed it and checked the diaphragm and it wasn't leaking or cracked at all. It moved freely and felt good.
With the clutch cover off, just a couple mm of pull on the lever and you can see the pressure plate start to move and it completely moves up off the plates.
Still had issues with it this weekend, it stalled on him a couple of times when braking for corners. He uses 2 fingers on the clutch and had the other 2 still gripping the bar. Since he couldn't pull the lever all the way to the bar, it wouldn't disengage enough and stall. He started grabbing it with all 4 fingers and didn't have another issue. He shouldn't have to do that.
I have the lever adjusted as far out as I can for him to comfortably reach it. Keep in mind, for the first 45 hours on this bike we had the clutch lever adjusted in much more than we do now to compensate for this issue. I'm at a loss and very frustrated with it. I'm going to end up spending far more money that I should have to at this point on it.