KZ 650-B2 Ignition Coil repeated failures.

Flip the Dyna rotor and then swap the primary coil wires. If the problem switches to the other coil, then it's the Dyna causing the failures. If it stays on the same coil, then it's something else on the bike, like wiring or voltage.

Though, really, there is not much else that can fry a coil besides the igniter and high voltage, unless you help it die.

When you check for spark, if you don't provide a path for both plug wires to have continuity with each other, the coil will die quickly through internal, high-voltage shorts. That is, it will only short when trying to create high voltage. You might not detect it with a meter. Don't check for spark unless both plug wires can spark to the engine (or to each other).

i did not see a resistor in the diagram. what is the location of it?

Im going to place the bike on the trick charger, and see if anything changes, if not I will check the wiring from the ignition switch all the way to the coils. I have 2 good coils arriving next week in the mail, and if all else fails I will try the old points system. Thank you for the advice, I will keep everyone posted.