Thanks to loudhvx for the link to Oregon Motor Cycle parts.
Strange but true -- some stand alone voltage regulators are servicable (as here) while other's aren't (such as KZ900). The combo unit from Z1E works just fine on KZ900 replacing both regulator and rectifier with single direct plug-in. Perhaps due to some obscure phenomenon from the
sinusoidal dimension
but am afraid to ask
Here's the OMC part VR2-KZ650 listed for KZ650B and early KZ650C models ($47.50).
OMC also lists VR2-U without spade terminals and with pair of three-prong plugs (red to positive, black to ground, green to field coil) ($48.00).
Always hoping for the simple fix, and that wiring corrections and possible regulator servicing will resolve the electrical problems.
Wishing for you good luck with the repairs.