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I suppose it’s possible it could be a top or bottom seal but I’d be surprised, especially since you had the flywheel off. I would think you’d have noticed a lot of oil in the mag plate area, if the seal was bad. Speaking of that, did you torque the flywheel nut with a torque wrench, when you put it back on? The spec for that engine is pretty high, compared to an OMC. I guess this is a stupid question but you’re sure the magneto is advancing and the carb’s throttle plate is opening at least a little bit, when you move the throttle handle, right? I seem to remember some plastic and funky linkage-action going on, on those things. Something might be stuck or broken?
Long live American manufacturing!