Hard to diagnose over the Internet, but I’m thinking ignition issue,How does it crank with the ignition coil disconnected?

It cranks fine under both circumstances. Ignition and start switch are separate so I can crank without ignition enabled. With ignition on it simply fires and then it will suddenly blow s the starter

Have you looked at all of the flywheel teeth or just the ones visible with the starter removed?
Could there still be small bits of the orig bendix gears embedded/fused between the flywheel teeth?
Orig flywheel?

is this an over voltage issue ?

From what can be seen it looks okay. It is the Starboard motor so of course limited visibility. We did crank it over by hand and look at through the starter hole and it looks to be okay.

No Voltage is fine, I think that would effect the starter solenoid and motor more that this.

Thank you all, we think we have pretty much through the process of elimination determined that it is starter backup. Now to determine the root cause. the guess is that it is not retarding through the Daytona Ignition Box at start up. Just need to determine how to test and correct. Hopefully tech support will get back to me tomorrow to discuss. I will post the final answer and resolve for any others that might run into this in the future.

Did you replace the bent bolts? If so, were they the same length? I've seen bolts slightly too long going into blind holes, bottom out and convince the installer that it's tight when its just bottomed-out.

Yes new each time.

Disable the fuel supply, put a timing light on it, and crank it over watching the balancer