IFFFFFFFF the Cutout Relay is latching in/closed, then the gennys output on its ARM post is effectively tied to the battery via closed cutout relay and ammeter and Id expect it to be close to battery voltage less the small ammeter and relay and wiring voltage drop...
Ifffffffff the wiring is correct and the ammeter is working, that 7 to 8 amps you mention sounds fine and after running a while Id expect it to drop back. Buttttttttt if the batterys taking a 7 amp charge Id expect the battery voltage to be rising from 6.3 to 6.5 to 7 or so (your stories arent jiving lol)
To me an accurate way of seeing if the system is charging is a voltmeter on the battery. Id expect it to be 6.3 volts not running but rise to at least 6.5 to near 7 or a tad more at fast RPM once started.
MY THOUGHTS: Not knowing how accurate your meter is I wonder if the cutout relay is pulling in?? (That could explain a difference in battery versus genny voltage) If the genny isnt putting out enough voltage the cutout relay may not latch in to tie the genny to the battery. (but that 7 charging amps sounds like its working???)
SEE WHAT HAPPENS IF YOU TEMPORARILY DEAD GROUND THE GENNYS FLD POST??? That puts the genny in high charge and if the battery voltage rises then (but not otherwise) I suspect the LHBD switch is bad,,,,,,,,or isnt well grounded,,,,,,,or the wires bad from FLD on genny to the LHBD switch. If shes still not charging at fast RPM with the FLD dead grounded, leave it grounded and by pass jump across the relay (connect BAT to GEN/ARM) n see if she charges then????? With the FLD grounded and the relay by passed you have effectively ruled out any relay or LHBD switch problems so if she still dont charge (if all is wired right) the genny must be at fault..
The closer the third brush is to the fixed brush the higher the gennys output, maybe try it a bit closer????????
Work through my Troubleshooting Procedure to diagnose the problem
John T
John Ts Troubleshooting