I imagine the PTO switch has to be connected to start the engine as part of the safety interlock sysytem. I don't know what your PTO clutch resistance should read. I'd check my wiring very carefully for a short, exposed wire, etc. I had a brand new lawn tractor (AYP) that had pinched wires right from the factory and a bad PTO switch too. I don't know how you'd check the clutch itself and they're expensive to buy and replace if you don't know for sure they're bad. Does the belt sheave on the clutch turn freely by hand with the tractor shut off? It should. If it doesn't, that is an indicator of a problem.
If you unplug the clutch and pull the switch and the tractor runs, that sort of leads me to suspect a bad clutch, but it may be the circuit not being complete has an effect. You might try adding a jumper across the tractor side of that plug and see if that makes a difference. If it stays running, I'd bet the clutch is bad/seized/shorted.
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