I've never had a clutch slip to the point of overheating all the components. They either engage or they don't....and only a broken clutch spring or a worn out drum would cause slippage, which would smell -just like an automotive clutch slipping.
Also, when reassembling the clutch drum, take note of the notch on it, which must engage the oil pump drive mechanism. It can be a bit delicate to get them lined up.
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