I'll have to take a look at my 350, but at first glance, it looks like the cover for the generator is installed upside down. I'm pretty sure that the wires for the points should exit the frame with the rest of the generator wires, not through the notches on the edge of the frame.
Update: There are no notches on my 350's generator frame. The point wires exit through the same rubber grommet as the other generator wires. 350's aren't identical to the 175's, but I think they are the same in this area.