It's likely either rusted on, wedged on by Woodruff-key deformation - or, like my MR175, both.

I didn't destroy my flywheel getting it off, but it wasn't until I
accepted the possibility of destruction that I applied sufficient heat & force to remove it.
If I recall correctly, after removing the nut I laid the bike over and kept filling up the crank/flywheel gap with PB Blaster (I don't think it did anything, but it made me feel better).

Then I put on the puller and cranked it up tight (it's important to grease the bolt point - I always forget to), heated the flywheel center real hot at first (and nearly cherry red later) and started 'rocking' the flywheel with alternating left/right blows inward, along with direct sideways blows now and then. Occasionally I would apply more heat, and try and crank the puller a bit tighter. One thing I wish I had tried was using a drift punch in the keyway to shift the key slightly, which might have saved me a lot of time.
Normally stuck flywheels pop off with a cracking noise, but I didn't even know mine was loose until I started to see movement from the hammer blows. It turned out that the Woodruff key had "rolled' slightly in the groove and wedged it real good, also allowing water into the taper for some serious rust action. Every MR woodruff key I've seen (5 so far) has been toast, with some of them nearly sheared in half.
If enough heat is applied to the center it should break the rust bond, but only with the puller also yanking it off the taper (I'd use your 2-jaw). You might also have some luck heat-cycling it, using PB Blaster - or, if you're feeling brave, freeze spray - as coolant.
It might also be possible to use a chain vise on the outside of the flywheel or large pin spanner in the slots against the nut to try and spin the flywheel a tiny bit to break its grip, but it would really suck to snap off the flywheel threads.
Ray