If you are old enough you will remember points & capacitors which were an eternal problem on mowers
Well in 1962 quality mowers replaced the points with a Hall Effect Trigger
American mower companies were too cheap / stubborn / nationalistic to replace the points till around 1990 when the Australian patient ran out .
For the next few years they used an external trigger unit then some smart arse worked out they could embed the chip into the coil and change the coil from a $ 5 part to a $ 50 part which was a good money maker as the chip cost 25¢
So if you remove the kill wire & you get no spark then either the cap on the spark plug lead has gone bad or the chip has gone bad
PS rust on the flywheel & / or ignition module ( previously called a coil ) have zero effect unless it is thick enough to touch together as the magnet passes the magneto legs
Having said that corrosion between the mounting plate & the ignition module can cause a bad ground but is the 12 years I have been doing this for a living I am yet to find this to be a problem unless the engine was stored without the magneto module in place .
So if you have no spark with the kill wire off , time for a new module