I think I’m right with what im about to say, Electrics aren’t my strong point. I’ll be corrected if I’m wrong I’m sure.
If you remove the Reverse wire from the sensor and ground it to the frame it will bypass the sensor, that would eliminate the possibility of a bad bad sensor.
I’ve been lucky so far with electrical issues on ATV’s so my knowledge is pretty much limited on the subject however, the above method works for Neutral/starting in gear somim basing it on the same theory.