On many motors the tell tale water does NOT go through the block.-----Not so on this motor.----Something simple is being overlooked.----Post picture of how you are testing this motor.
Key has to be " on " to get spark.----So remove one of the black wires from the key switch.----Test for spark.------I would pull the flywheel to inspect the coils , clean and set breaker points to 0.020"
If the copper tube was stuck in the pump housing you have to remove it.----First install the copper tube into the exhaust housing.----Then install the lower unit.
Little cover ( 3 screws ) on top of cylinder head.----Those thermostats are often stuck open.----If it tests good why replace it ?----Yest run in a bucket with water 8" above impeller.
You are missing another bracket ---Item #20 and part #0123440.-----You have the correct bracket there on the cowling I believe.---------Post picture of cable clipped on the motor shift lever and fitting in that bracket.
What is the model # of the motor.-----And yes there is supposed to be a pin in one of those 4 holes.----Goes from one side to the other.----Part # is 0432453 all day long.