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Not sure if it's the main culprit or not but when I was installing the turbo I found that the ground wire for the alternator was completely loose. Barely attached and about to fall off the frame stud.
Success! A shop vac, a flat screw driver, and some electronics cleaner got it all cleaned up inside and the new regulator went back on. I got everything reinstalled, cleaned all connections, checked the voltage at wire 568 and then started it up. I was relieved to see the needle of the gauge...
While disassembling my voltage regulator to replace it I found what looks like Apollo 1 and smells like the best materials that the EPA banned decades ago. It looks like the fire? originated at the #5 terminal and made everything else nice & crispy. This alternator still works pumping out 33.2...