Let me see if I understand the sequence.

First you install the battery and before even turning the key, the wire attached to the fusible link fails. (Not the one with the ? mark.)

You replace the failed wire with the red wire the arrows are pointing to.
When the key was turned to start, the starter turns over but it won't start. The lights do work. Then maybe you put it in run and jump the starter while checking for spark from coil wire to ground?

During this testing, you notice smoke and find the battery and alternator feeds have burned.

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