I have this 69 AT1. Installed new KDI points, spark plug, and new battery. There is power at the brown wire at the coil. The electric start works and I can see sparks inside the generator when it is spinning but no spark from points and obviously at the plug. 
I have a question that I should know but, should there be 12v at the points when the key is on? 
The starter/gen was quite corroded and I cleaned that up as good as I could.  

Is it possible the points were grounded during their installation?

Did you scrape the points as there is a film on new ones. I use a razor blade.

To answer your question, yes, you should see 12v at the points wire (orange) but ONLY with points open (and key on).  When points are closed the voltage at that wire should drop to zero. 

Using a voltmeter or simple test light is a very accurate way to determine exactly when points open on a battery ignition system.

Also you don't need to spin the engine to get spark on that model.  Make sure engine is rotated to where points are closed and then you can use a little screwdriver (or better, something plastic or wood so you don't accidentally ground points) to flick the points open.  Or I like to get engine rotated to where points are just about to open and just rotate back and forth a few degrees to get points to open and close.... each time points open (key on), you should have spark at the spark plug.

P.S.  It's great the electric start spins it...  starter doesn't seem to be that robust though....  so I'd avoid excessive and especially extended cranking with the e-start.

Not sure you get a full 12 at the points after going through the resistance thd coil creates but I'm full of wrong guesses. But that aside-- you say can see sparks in the generator which doesn't sound good. My guess is points wire under rather than on top of the insulating bit. With points closed if you just flick them you'll get spark at the plug. If they're open just screwdriver scratching around the points arm & base will get spark. Pretty full proof system on those.

Easy to get the lead in the wrong place. 

Ask me how I know!!! 

So, with everyone's help, I noticed that the phenolic insulator was not on top and causing a ground situation. I put one in there and the bike now runs.
There's a lot of smoke but I think there was prob a lot of oil in the crankcase area.

That's good.  Wonder how hot the coil got being shorted permanently to ground. Nothing dripping under the tank. Anyway--she runs. And it's old enough to smoke, or vape.

The coil seems fine, starts and runs well. It's also smoking normally now. I almost forgot that I did a top end about a year ago. Got busy and now resumed working on this.