Just exactly how much, would you say, 'free play' do you have when first pulling in on the clutch lever?
If the bike is lurching forward when you put in in gear, while the engine is running, then there's probably nothing wrong with your clutch safety switch. It's your clutch fluid giving you grief.
Most likely have an air bubble trapped high up in the lines someplace. When it happens to me, the bubble is most always trapped up at the banjo bolt, where the clutch line attached to the master cylinder on the handlebars. If you cover things extremely well to protect your paint from spilled brake fluid, you can gently loosen that banjo bolt while similtaneously giving your clutch lever a partial pull to 'burp' the air out there. Then immediately tighten the banjo back up BEFORE letting go the clutch lever. I hold a rag all around the banjo when doing this to sop up most of the brake fluid coming out, and prevent it from dripping down onto the other rags I have in place to protect the whole bike. (remove faux cover before doing this to begin with). If you get an air bubble there, you can gently repeat this cycle a couple times to ensure you have all the air out.
If yours acts like mind did, you can bleed and bleed all day long down at the slave cylinder, and still not get all the air outta the system, and most likely, the bubble will return a few hours later up by the banjo bolt.
Holly chit.......Not sure what Donnelly is talking about. I wouldn't put water any where near where I was working on bleeding brakes. A stray droplet of water is the very last thing you would ever want accidently getting up inside your brake system. If I understand what he's saying correctly, it would be much better to use extra brake fluid to sink the end of the overflow hose down into.