I was hooking up an old style (but unused) 3W ignition sensor with a JR-style connector so I could use it with a DA ignition module. I cut off the Dean's connector which had a black, red, and white wire. I discovered the center wire (red) only went a few inches into the heat shrink tubing and stopped...not connected to anything but the Deans plug.

Is this correct? Or is there something wrong with the sensor wiring?

The DA ignition box has a JR female connector with 3 wires attached.

Never saw a 3W ignition with a Dean's connector...The sensor on DA and 3W engines is not the usual Hall Effect sensor..There's a coil and a steel pin in the plastic housing..It takes only 2 wires to connect it to the ignition box, the third is just in there but not used.....

Thanks Ralph!
You may be right that it's not a Dean's connector, it's 3-pins with an uneven spacing between the pins.