When you release the bail handle, two things happen, your coil gets grounded stopping spark, and a brake is applied to the flywheel. I'm not familiar with the particular set up on the Kohler XT675, but i would look to see if the coil kill wire is being grounded when the bail handle is in the released position, it's usually isolated from ground with a plastic insulator, and when the handle is released a metal lever makes contact with a tab the kill wire is hooked to and shorts the coil to ground killing spark.