If the neutral light is not working then it's likely the neutral switch is faulty. But most bikes will start in gear provided you have the clutch pulled in and the sidestand up. It could be either the sidestand switch or the neutral switch, I'm guessing neutral switch since your light isn't working either. it's usually located behind the sprocket cover on a white plastic plug but it depends what model you have. They usually don't break but it might be dirty and need cleaning. Most yamahas you can take them out easily, just be prepared in case oil spills as you remove it.
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