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I guess my next move would be a compression check. You should have minimum 110 psi.. I’d like to see 125. After checking compression, remove the complete power head and see if it still turns with difficulty. What you’re trying to determine is whether the power head or the lower unit is what failed. (These Mercs have very fragile lower units and do not tolerate lack of good lubrication well, AT ALL.) When the motor stopped, did you immediately pull the starter cord to try to start it? Was it free-turning at that moment, or bound up? If it was stuck at that moment, then became free to turn, albeit badly, it probably over-heated. As Tubs said, either way, you’ll need a known good impeller, going forward. Also, what fuel/oil ratio were you using? Stupid question, but with so many four strokes on the water these days, you DID mix oil in the fuel, right?
Long live American manufacturing!