Just forget about looking for power at the fuel pump, this is not your problem
Check for 12V on the + (positive) side of the ignition coil. Not the one on the starter but the one on the coil
The reason it fires and dies when the key is released is because voltage is breaking. I'm thinking its the key switch or the kill switch
I think I'm getting confused as to what the OP is actually seeing.
1. All purple wires should have 12v at them whenever ignition is on. That's at the coil (+) and the oil pressure switch.
2. The fuel pump is powered by the pur/yel wire from the starter, through the oil pressure switch, when cranking. That wire is only hot during cranking. In the run position, the oil pressure switch closes (when adequate OP is reached) and the fuel pump is powered by the 12v from the purple wire. If the switch isn't closing, the fuel pump will only run during cranking.
3. "So when the key is on I have power to the purple wire only then when I crank the engine I have power to both purple and purple/yellow wires ...when I release key I lose power to purple/yellow wire."
This is normal.
4. So OP, you have power to both the coil and pressure switch in run position, correct? You can check the purple at the coil during cranking, or check for spark during cranking as the next step.
alldodge , from what I'm seeing, this engine doesn't power the coil through the slave when cranking, so if the kill switch is the problem then he shouldn't have 12v at purple at all, and won't catch. If the neutral safety switch is bad, the motor won't crank.