Update......just about finished with the break-in on this rebuilt PH, ran it for 4 hours yesterday. Was running real good, then during the last 30 minutes it sounded different, like it was struggling to maintain rpm, and noticed a vibration. My first thought was the lower unit. Raised the motor and noticed the black plastic prop nut was gone.....but no obvious damage or anything caught in the prop. Limped back to the ramp and headed home.
Had just replaced the gear lube before the PH work, so it only had a few hours on it. When I drained it after I got it back home, it was black and filled with tiny metallic shavings....so many particles that it made the lube thicker. No signs of water intrusion though. Took a pic but all it showed was a reflection off the oil.
The acronym B.O.A.T. came to mind.....because 1K is about what it will cost for a rebuilt unit.