idk how victory is but on the bikes i've seen, there is an electrical post that will detect when the gear change shaft is in the "N" position, thus meaning it really has no idea what is going on in the transmission, just "when the shaft is in this position and everything worked perfectly, it shouldn't be in gear" so its not fool proof.
my vulcan did kind of like mentioned, "N" light was on but when i let the clutch out it fell into gear and killed it.
2007 Hammer S 100CI
S&S air cleaner, PCIII, SRVT clubs exhaust, Avon grips.
2006 Kingpin 100CI
stage 1, touring setup to come soon...nm bought a XC.
2013 Sunset red and black XC