Yo Steve, you may wanna check that drawing. The VR's L terminal is always hot ya know so if the wire to the coil is on same switch terminal as shown, its always hot !!!!!!!!
When you have a 4 terminal, as opposed to only a 3 terminal VR, the L voltage feed up from the VR should go to the BAT input terminal on the switch instead of the switch getting its hot voltage feed (its BAT terminal) from the Load side of the ammeter as your sketch shows (When using a 3 terminal VR the switch then gets its voltage feed from the load side of ammeter).
Just remove that red wire from the ammeters Load side down to BAT on the switch and run the blue wire from L on the VR to BAT on the switch (instead of IGN as shown) and then shes correct. You sort of drew a 3 terminal VR diagram but mixed it with a 4 terminal VR.....
To wire a 3 terminal (BAT GEN FLD) VR its
BAT to load (NOT battery/starter) side of ammeter ARM/GEN to gennys ARM post FLD to gennys FLD post Lights and Ignition (their switch) get fed voltage from the load side of ammeter via a wire from it to the BAT input switch terminal
To wire a 4 terminal (BAT FLD L ARM/GEN) VR
BAT to load side of ammeter ARM/GEN to gennsy ARM post FLD to gennys FLD post L (NOT ammeter) feeds hot battery voltage to loads like lights or ignition via switch lights and ignition
Hope this helps, God Bless yall