Re: Water in Cylinders
If the boat was moving when the engine died it probably took water up the exhaust, especially if the engine died suddenly.
In my opinion the timing of events was 1.) engine died then 2.) water came up the exhaust for the 1-3-5-7 bank and went into whatever cylinder's exhaust valves were open (not all 4 cylinders) causing hydrolock potential in those cylinders. Water was probably pooled up waiting for the other cylinder's exhaust valves to open and went on into those cylinders when the engine turned over briefly and then hit the hydrolock point.
Taking out all plugs, both banks, squirting in some WD40 (Water Displacing oil formula#40) then cranking it as fast as it can turn for 10-15 seconds should clear the water and not scrape the oil off the walls. Put the plugs back in and fire it up (if you are certain the risers/manifolds and gasketed joints are solid then have the water going to it to keep the impeller happy), let it get warm and vwolla no lasting damage to the engine. Probably. All of that is failry simple and nearly free so I would do all that first.
Caveats/Considerations: My advice is based on my take on the chronology of the events, and does depend on you finding the reason for the engine dying first and fixing that.