74Merc50, Is your anti-Ventilation plate level with lowest point of the bottom of hull?
I seriously doubt this has anything to do with the motor position. It's been running just fine for 44 years in this configuration. No PTT.
This was prob an issue with improper impeller installation and/or lack of any initial lubeage. It was likely installed in reverse and just tore itself up within an hour. Sounds plausible to me.
Occam's Razor - The simplest solution tends to be the right one.