Sent an inquiry off to EBC regarding their friction plates for the KZ1300 . Their part # CK4458 is the kit for the KZ1300 consisting of 9 friction plates. The thickness of the friction plates as new is 3.5mm. Mine measure 3.35mm and the service limit is 3.2mm . Doing the math I'm at the halfway point to the service limit, so no need for new plates.
Oiled up the steel plates with Shell Rotella T6 (the engine oil I'll be using) and put back together.
Bottom line - I spent an entire day (8hrs) cleaning, inspecting, and reinstalling. I'm glad I put in the effort because more than half of the plates were stuck together and the surface rust would have contaminated the engine oil and bearing in mind that iron oxide (rust) on the hardness scale Is up at the top. It makes great sandpaper so removing it is a proper thing to do here and not leave it to "fix itself.