Have a snapper series 23 rear engine. Starts fine with clutch fully engaged but when pedal is lifted the engine dies. I removed the shorting wire to the magneto shorting screw and it runs fine. I cannot locate the culprit?
pretend your name is Dorothy and follow the Yellow brick road, or in your case the magneto earth out wire you have already disconnected.
At each switch you come to, bypass it with a short jumper lead ( usually a 2 female spade jumper ) till the guilty party is found.
Most of the safety switches will have 4 wires, 2 will be normally open & 2 will be normally closed and the opposite wires are the circuit being switched.
naturally the magneto earth wires will need to be open for the mower to go an the other 2 wires will need to be closed for the engine to crank which will help you sorting things out.