Since my original post I have found that what I initially thought was the regulator is a relay so I assume that the regulator and rectifier are both contained in one unit. As regards the yellow and white wires, at no time are they connected to one another. Effectively, when the lights are off, the charging current is supplied by the brown and yellow wires. When the lights are on the charge is via the brown and white wires. Looking at the coils in the alternator, some look to be different in size/ number of windings to the others. From this I conclude that the windings supplying the white wire are capable of higher output than those supplying the yellow wire. This would be to compensate for the extra load from switching on the lights.Looking at the diagram it appears that there is no separate regulator. It may be contained in the inbuilt rectifier. From the other switch diagram, it shows the connection of the white and yellow together when the light switch is on. This would boost the dynamo output when the lamps are on. Not certain, but this may be a fault in your switch. Do you have any pictures and circuit of the coils in the dynamo?
Can you test the "no load" output of dynamo at 4000 rpm?