well first.. that snorkel seems to be counterproductive to be honest..
it sits rather low, so water can enter the snorkel and...
even if the water is not getting into the carb it may be enough to stop the air from flowing;
that is if your airbox itself is watertight.. otherwise it doesn't help a bit
Anyways: snorkel...
I'd move it as far up as possible.. maybe under the tank
(if you don't find splashes there it should be safe to use that as the intake location
)
Then, yes.. you can short the engine out with water at the coil,
but that'd mean your coil case is cracked... (external water is of NO ISSUE!)
if there are points under the flywheel, that those must be kept dry of course, but I doubt that.
(engine looks too young
)
So what's more likely happening is this:
your low oil level protection shorts out.
(or original killswitch perhaps)
so check the wiring for unisolated parts (intentionally or because of a damage)
especially the thinner ones....
anything flimsy is more often than not more important than you'd think
When you're sure every wire is watertight and can not short, no way..
then check your coil and spark plug cable.
and if that's dry and in perfect condition too...
I'm out of ideas.
And no, you can not plug the breathing holes for your engine..
if you do it will overheat after some time.. that's not a good idea.
I know stationary engine.. all true... but it still needs to be aircooled by it's fan
'sid