A spun prop will still turn with minimal load. See if it turns while the boat is on the trailer.
To be honest it sounds like the boat is not shifting into gear or the lower unit is blown. Do you hear any sounds when shifting in and out of gear? With the engine off put it into forward and try rotating the prop counterclock wise if it turns freely the dog clutch is not engaged.
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1997 Silverton 362, 7.4 Crusaders
1997 2400 SCR, 5.7 Vortec / Bravo 2
Mike
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