Getting a pic of the actual hole would settle it for sure. If it looks like a hole a manufacturing company would make...it probable is.
Test to see if the overheat alarm system is working...did the motor get hot?
All clues.
Reading through the thread here...am I missing something?
Have you unplugged the control box and jumped it at the motor? Kill circuit, wife overboard clip.
Pull it at night...might see flashes.
If you got hit, something zapping. You might have two shorts or two problems.
Again, wiring is suspect...old and if it got hot once, insulation melts. Seen it more than once.
Tiller or remote motor?
5/16 gap like suggested? Yes or no?
GAP testers are inexpensive.
1/8 inch turns or 1/8 of a turn?
Spark has to advance to start cold.
I've been hit myself....motor harness was the culprit.
Is there fiber washers between the ignition coil and powerhead?
Yeah...I own E-tec's too so I'm a fan.
Looks like a pontoon boat motor? Might explain all the idling hrs. Be nice to know more history but if it's ok you will love that motor.
Btw, BRP is still around just not making the outboard...their also still making parts and warranty for the g2, but...