Update with Pics.
I opened the motor just now and here's my findings.
My workshop
My workbench
Freewheel side Bearing is OK.
Spinning the freewheel side bearing on my finger with ease. No drag.
Cable side bearing is slightly more difficult to turn - in comparison to the freewheel bearing side.
It is also very slightly loose, allowing the whole rotor to move slightly.
Inspect for any damage/ rubbing on the magnets. Hmmm...
A closer look... lots of scratches on the magnets where the lose bearing has allowed the rotor to rub against the stator.
A look on the other side...
no damage here on this side.
I can't see any evidence of the wires rubbing against the housing or any burned out wires of any sort...
Now if I was to get a new bearing set myself from RS, I'd have to put the same make/model on either side because this just makes sound engineering sense - they will also be more reliable.
The good bearing on the freewheel side would have to come out but it's stuck solid fast, there's no way it's coming out without a lot of force.
Also, to get that damaged bearing off the motor i'd have to un-wire all the connectors going to the damaged controller, replace the bearing, then re wire the connections which while is not beyond my abilities, is a massive pain in the arse.
There's also the possibility that the rubbing of the motor against the magnets has caused other issues that have yet to be seen.
The fact that this motor is brand new with less than 1KM on the clock and the motor is unfit for use and the controller has blown is a massive let down.
However, I have compete faith in Gary from GM Canada and Tom from GM and that they won't leave me out in the cold and will expedite my situation by any means necessary.