Cranks but won't start. Unplug ground at field spade on Alternator and it starts?

I put new alternator and voltage regulator on car about two weeks back. Everything worked great. Then last Friday stop to get gas on way to car show and car would crank but no start. I found if I let go of key real fast let it snap back into Run position I could get lucky and car would start. But no spark in Start position but starter would turn over engine. New alternator and voltage regulator worked fine up to this point.

So did some test: with neutral safety ungrounded, put key in Start position and measured 8 volts, battery had 12.5 volts. When I unplugged Ignition 1 from ballast resistor I got 12.3 volts at coil. After fooling around with car several days, ohm'ing circuits out not finding any wire problems I thought what if I unplug the Ignition 1 wire at voltage regulator and car fires up immediately? Then I thought what if I plug voltage regulator back in and remove ground wire on second spade at alternator and again car fires up immediately.

If I leave everything hooked up, put key in Run position, jump starter relay, send battery volts to coil, car fire immediately at which time I take battery to coil wire off. Charging system perfect, headlights bright no discharge, car runs fine everything seems to be working perfectly.

So its starting to look like there is some issue with two week old alternator bleeding voltage through ballast resistor, Ignition 1 to voltage regulator, and to field on alternator. Cause if I unground second spade on alternator car fires immediately because the 4 volts bleed from coil goes away. Or could there be some issues with voltage regulator?

Anyone ever seen anything like this before? Maybe @Mattax might know?