If it is in neutral, the inner basket should spin (not with the friction plates in however take them out! If it's not, I will tell you what happened to me, I had a similar issue and found that the two washers, that go behind the outer basket, the thicker one was not the right size (thickness) and when I torqued the center nut down it was keeping the inner basket from turning. There are two washers one is super thin and beveled that goes on the shaft first with the bevel (hump) facing you, then the larger (thicker one goes next flatter side towards the motor). I don't know why the motor had the wrong thickness of washer on it but it did, KEN-Oconner helped me figure this out, one evening on the phone- he was able to figure out what the heck the issue was, but now with the correct washer I have no issues!!
I pulled bike bandit oem schematics, ill make sure everything is in its correct place. Hopefully nothing is missing! Seems to be the case on everything with this bike!