It's the knob at the end of the clutch lever where the cable begins (not the knob at the clutch lever). I think clock-wise is to make the engagement point closer. Half turn at a time. Use the other knob for adjust the slack of the lever.
It's not broken. Don't worry.
It just takes time to find that sweet spot.
I adjust it differently for summer and winter because of the thickness of the gloves.
It's weird. I find that the clutch is more important than the throttle because the clutch modulation can smooth out the bike's drive. I've seen a lot of people don't use the clutch that much. I find it odd.