Swarf in the oil could just be kickstarter-quadrant teeth - was with mine, the quadrant alignment is not exactly brilliant - see
download/file.php?id=3446&mode=viewCheck the clutch-side stuff first, because you can do that without cracking the case. You'll probably need an impact driver to get the clutch-cover screws out, though. And a new clutch-side gasket. I have a stencil if you're feeling brave and want to make your own from gasket paper.
As for taking the rotor off - yes, it's an M10 bolt, but file down the last few turns, otherwise you risk damaging the crankshaft inner threads where the points-cam bolt goes. The rotor is a taper-fit on the crankshaft with a Woodruff key, which (given the age of these things) will probably be stuck firmly in the crankshaft keyway.
Your TS is a later model, I think, so your primary sprocket will be the threaded-and-tapered duplex rather than the "two-screws" simplex as shown in the manual. You can use the claw puller, but a screw-on popper is better. You'll also have to take the clutch off, which means you'll need a spring-pusher (brace the bike against a wall, and put a sheet up behind you to catch the spring-cups). You'll also need a clutch basket stop. I made my own out of an old driven plate and some scrap steel rebar. See attached photograph - the diagrams in the manual are a bit hard to read because of the scan quality.
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