It must have some kind of driveline protection... keep looking. Try it again, but leave the PTO running after the beater stops. When smoke starts billowing out that's where the slip clutch is. What I think is wrong with it is possibly a sheared woodruff key somewhere near the beater shaft. You didn't state whether or not the floor chain keeps moving. Secure the beater so it can't turn, and stick a long bar through the PTO U-joint and have an assistant watch the driveline while you turn it.
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