Guys, thanks for the answers.
Sorry not to be clear on this, the clutch was fully disengaged. As I said I think the clutch plates are binding together since the arm on the engine that operates the clutch push rod is moving when I pull in the clutch lever.
Yesterday I put the bike in 3rd gear and went on and off the throttle holding the clutch lever in. That did not help, but I only tried for a few minutes and the engine was not fully warmed up.
I will try what you advice before opening up the clutch.
Is it common, having to take the clutch apart and physically pry the plates apart on the SY250?