Running 60ish when it felt like boat popped into neutral. Alarms sounded briefly until I got boat stopped. I figured out it was my starboard drive that wouldn’t do anything and limped boat to dealer on port motor. Heard slight grinding sound when I was put damaged drive into gear. Dealer checked shift cable and it was fine. Now to remove drive.
Any thoughts?

She’s toast. Won’t know what extent until it’s opened up, but I’d plan for a complete drive rebuild.

Most likely broke a tooth off of one of the XR gears,, them maybe shredded another gear, lower will be full of metal fragments also.

How many hours on the drive??If you're lucky, it might be able to be rebuilt. Lots of time the upper case gets destroyed.

If you want to get back on the water, your best bet is to bite the bullet and buy a new one or maybe find a rebuilt one.

What dealer??

If the power or torque you are sending to the drive is too high, you'll be dealing with this constantly. Each time your air the props, reentry can be a jarring amount of torque. After snapping a few, I installed Drive Guardians. They regulate torque output to protect the drive. Never had a problem with my XRs after installation, regardless of how hard I pressed them.