Hi Tom,
I don't see how a hole in the insulation could stop current flow unless there was a path to metal close by to cause a "jump", there by diverting the current from the starter. Could there have been a loose ground that was disturbed "correctively" when you were in among the wires?
I know over at the NetReg site there is in the "How to" section a write up on making your own PCV holder replacement, Mr Blanchard is the author...I think?
I was not aware that you could by-pass the VATS & the clutch saftey switch. That sounds to me to be a most favorable "corrective" solution to potiential failures!
Sorry to jump in here with no "answers"!
Sometimes I hate modern "electronic" cars....makes me long for my 72 LT-1....the car was so simple comparred to my ZR-1!
Tom