Finally got some time to work on it again.
Cleaned/ lightly sanded the points as suggested. Spun it up with the drill again... but still only reading 1v.
Got pretty frustrated, and decided to hook up the ignition coil / spark plug to see what would happen. Spun it again, and lo and behold I have spark. It’s not a big fat blue spark, but it’ll jump the plug gap, and would also jump about a 1 inch gap from the end of the plug to the case.
Planning on putting the engine back in the bike and seeing if it’ll start up with pedaling.