I am in search of a diagnosis for my clutch problem.

While at a traffic stop recently, the bike wanted to nudge forward. I knew something was not right. When I got home, I inspected the break fluid in the clutch reservoir and it was very low. So, I topped it off.
While the bike on the center kickstand I shifted to first gear and kept the clutch lever depressed. The back wheel was spinning as if the clutch was let out. It should be noted that the clutch lever was very easy to depress like no other time.

Any ideas? Thank you.
Mark
1997 XII Voyager