I think I know what led to this saw's destruction, I may be wrong though.
Under the clutch, the oil pump drive tit snapped off halfway down. It also ground down the oil pump. The surface almost looks like it was machined with a mill.
I think the prior owner put a non-pro clutch drum with no notch for the drive on and then tightened everything down. The clutch cover then bent the pump drive and then the saw was run with this amount of drag on it. So much that it ground metal down.
I think this was the cause.