Last year we had five new MS 271s (less than an hour run) brought in that looked like that, all were new users (first saw). Pretty much the same story, "We were cutting and then smoke started coming out, figured it was just burning new oil out of the engine, when we stopped, everything was burnt"...
After getting more information from them on how they were using it, it appears that while cutting they inadvertently hit the chain brake when the saw bucked, not hearing the brake click or feeling it engage, just heard that RPM start to drop, figuring they just needed to add more throttle, went full out with the chain brake on until they finally stopped their cut. As long as it doesn't melt the case beyond use, relatively easy and inexpensive fix using parts off of Amazon.
Happy birthday thread!!