Coming along nicely!
Low-torque on oil-filter is because you only need to compress rubber slightly to seal.
Igniter is for '88-94 bikes. Take picture of left & right cases of your engine, wonder if it really is an '86. Those used an old analogue ignition system, kinda like points-style distributor on old cars.
https://www.ebay.com/itm/391757818469
https://www.ebay.com/itm/373648895929
I suppose it's possible someone retrofitted newer '88-94 flywheel to your engine.