Could be you have stripped the shear key on the mainshaft. I'd say that's the most likely problem, based on the symptoms "dragging when kicking, but not engaging the engine"
Hopefully, it's an easier fix: it COULD be the clutch plate pressure springs may be too loose, and/or the friction plates have simply worn out all the friction material.
That is my long-distance, hands-off, virtual diagnostic.
At a minimum, you do need to run through the full cable adjustment procedure.
If that fails, you have no choice but to remove the cover and adjust the springs.
If THAT fails, it's down into the hub. If it refuses to come off, take extra care not to break it, as they are expensive to replace. You should use the special threaded puller, NOT a 3-jaw vice. (Don't ask how I learned this). $20 for the tool is less than $50 for a new hub.