You have the wrong coil that is why it is frying........... without the built in resistance the coil is getting too hot.
The thunderbolt ignition systems DONT have any resistance wire or ballast resistor..........That is why the coil must be internally resistored.
The coil you purchased is used on a old point ignition and the ignition had either a resistance wire (~2 Ohms and ~ 3 feet long in the wiring harness) attached to the + of the coil or a ballast resister (~2 ohms) between the power (purple wire) and the + on the coil. This reduces the current flow thru the coil.
Why they didn't just make a coil to withstand system current I don't know.........
Get one that is internal resister at any automotive parts store as it does not have to be one from a marine store. It make no difference what brand as long as it has the internal resister.
Marine and auto coils of that style are all the same in design (auto vs marine)
Your ignition, if mercruiser stock, is called Thunderbolt V and is HEI in design but not called HEI. (High Energy Ignition)
Older GM automotive HEI ignitions used a on distributor cap coil design..........That was the original HEI gm ignition.