Check out the "clunk"
A friend had a similar problem with a 4 cyl yanmar in a H40. The starter would not turn the engine over. It would however make a "clunk" sound. Attempting to turn the engine over by hand only resulted in the slightest movement of the crankshaft in either direction. He and another friend's diagnosis was a "rod or dropped valve". Considering the age of the engine (1986) he decided to purchased a new engine and had it shipped. He struck a deal with a local person to help him get the old engine ashore and the new engine to the boat (we were living on mooring balls in FL at the time). The deal included selling the old engine to the guy for $500.
While waiting for the new engine to arrive he began removing the old transmission to make engine removal easier. While doing this, he found part of the drive disk had disintegrated and jammed between the flywheel/drive disk and the bell housing. With the transmission/bell housing removed the engine turned freely.
The new engine cost him a bundle but he is very happy with it, especially the additional horsepower. The guy who bought the old engine was estatic with his $500 deal.
FWIW,
Good luck with you repairs.