I took off the flywheel inspection plate and with the plugs out the engine spins by pushing with just one hand on the gear. The starter gear is where it should be

The truck is full of small white bugs they were up in the clutch and on the flywheel teeth. I woke them up when I turned over the engine about 30 or 40 immediately fell out, some fell on me. They were under the mat in the cab too.

With the engine spinning so easily I'm going to turn it some more to make sure the valve train is smooth. It looks like the starter needs to come out.