The Cutout Relay portion of a Voltage Regulator job is to CLOSE when running so the gennys output can charge the battery, but OPEN on shut down so the battery dont discharge. If cutout relay fails jumping BAT to ARM can close to let the genny connect to and charge the battery. If it indeed charges correctly ?? ONLY then, the cutout relay could be bad orrrrrrrrrrrrrrrr the VR isnt well grounded..
You say its a NEG ground VR so is the battery connected NEG ground ??? You said regulator so I take that as a voltage regulator instead of a cutout but still a cutout does the same as far as that part is concerned
Iffffffff the genny polarity is opposite of battery and was NOT polarized BEFORE start up, YOU COULD DAMAGE THE VR.
I would insure the VR is well grounded CHECK THAT,,,,,,,Battery is at NEG ground,,,,,,Polarize the genny,,,,,,start and see what happens. If the ground is good and VR's cutout relay doesnt close,,,,,,,the genny isnt working or the VR is bad (or still not grounded). As above if it charges fine at right polarity if BAT is jumped to ARM that by passes cutout relay so VR must be bad (maybe got damaged by wrong polarity??)
To see if non charging is a VR or genny problem see my Troubleshooting Procedure
John T
Charging Troubleshooting