2003 M40D2 Shuts off with Shift

[Gizmo9278]

Background info.
The M40D2 will start, warm, idle and and seems to run just fine. It ran fine before this current event. My backyard compression test gave me 108-115-112 across the 3 cylinders using warm and WOT standards. Fuel is clean, fuel filter and lines replaced. Carb clean and rebuild was 2 years ago.

The issue I am experiencing is the engine will stop abruptly when put into gear. Am I do mean abruptly almost with a "clunk" with the shift, not the death from fuel starvation.

Event occurred in the fall and I just haven't been able to figure this one out yet. The attached video is 15 sec and the clunk and stall occurs around the 8 sec mark.

Any thoughts on what to check next?
Sincerely,
Gizmo

 

[pvanv]

How's the LU look inside?

 

[racerone]

Drain the gear oil.----Check for spark on each plug lead.

 

[Gizmo9278]

How's the LU look inside?

Hi Paul and Racer,
Thanks for responding.
There are no physical marks on the outside and no obvious leaks or drips from the Lower Unit. That said I will pull the Lower oil plug and report back with findings [normal, white or none].
Regards,
Gizmo