Okay so I lost all power out on the river. Made it back to marina. Saw water between the jet and engine. Thought it was a freeze plug. (New to this rebuilding jets)

Pulled engine. Replace freeze plugs and packing bearings. Fire engine on stand and sounded completely heathy.

Drop engine in. Hook up jet. Get it all back together. Still doesn’t start?? After I hook it up to the jet.

When I had the engine out I could spin the shaft freely?
I don’t want to have to do a complete rebuild on the jet if I don’t have to.

Shaft does slide about a half inch towards the bow and back. Also checked that when engine was pulled.

Please help if possible. It was my grandfathers boat that I inherited and I’m a mechanic but have never worked on a jet