Kickstart issues

the real problem is something is jammed
when you take exhaust off to do your leak test
look up through the cylinder and see if you can see any damage
on cylinder/piston.
maybe drain your tranny fluid and look for metal shavings
or look for metal shavings when you take your carb off
to do your leak testo_O

if indeed engine is locked up?

if it was mine i would just take cylinder off to inspect
then proceed with flywheel/clutch side to look for evidence.If none found elsewhere's
after your 'leak test'
 
Ok I removed the top end to inspect the piston in which it looked good no issues at all, but when trying to move it up and down it won't budge at all. So then I removed the clutch side and I've noticed the two rear sprockets are frozen, won't budge. The otter basket won't move but can tell by wiggling it that it's the two rear ones keeping the engine from moving..
 
got pics?
did you remove the cylinder or just the cylinder head?
i know you don't have a flywheel puller but it could just be the flywheel magnets broke and jammed up against stator:)
its alot of guessing cuz we have not seen it at all
and just going by what you described:)

pics/video maybe?
 
sounds to me like a seized bearing or as speedy said flywheel. Pics would be ridiculously helpful at this point. a video would be good too. If you upload pics get a shot of the whole clutch side. and some up close shots of where you think the problem is. and remember blurry pics will not be helpful at all. also make sure it is in neutral.
 
Here goes a photo from the fly wheel side the piston looks to be fully extended
 

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only thing i can tell from your 1 pic is appears that piston has not dropped a skirt/ broke:)
green gasket paper gasket is a bad idea/stock or cometic is a better option,
and flywheeel is a bit rusty on outside at least:)
 
These e two cranks in the highlight area is what i believe is the issue. They will not spin when i grab the outer part of the clutch and try to spin it.
 

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No i havent took the clutch basket off yet. Yes it's neutral. I can't get the piston to move . I'm assuming the kick start issue has something to do with this.