Highly unlikely you were able to test the coils properly, as you need expensive equipment to do so. Retest the coils this way. Hopefully you have only one kill wire attached to the coil. If you do proceed as follows. Remove the shroud, disconnect the kill wire from the coils, If one or both plugs spark, coils are good. If they don’t spark bad coil. This is how the good techs do it with these Hall Effect coils.
If you have 2 or 3 wires attached to the coil you will have to refer to the testing procedures in this service manual.
https://resources.kohler.com/power/kohler/enginesUS/pdf/32_690_01_EN.pdf
Thanks for the info. Now, as weird as this sounds, I have good spark with the kill wire removed (only 1 each) BUT now I also have spark with it attached. On both coils. And still no start.
Additional info: my buddy says he replaced head gaskets sometime last summer and it ran fine but he says he "really doesn't know how to set the valves properly". Since I have spark, air and fuel, the only thing left is compression on the engine side. That's what made me check the crank key. Seems like it would still try to run (at least on one cyl.) Yes?
So I go back to something electrical other that coils, spark, etc.
Also, I just put on a new starter. Old one was hanging up in the flywheel.
One more thing, when removing the coils to pull the flywheel, I see where both bolts on bank 1 were stripped and it appears one side may have been rubbing the magnet.
I know this is a lot to digest. Thanks for taking the time to sort through it.