A dislodged magnet can do a lot of damage, carefully look at the alternator windings. The current draw indicates a problem here which may have caused the v/r to fail. It certainly will cause an imbalance and subsequent vibration which you may not notice but will be hard on the engine.It should not affect running on your engine as the magneto and pick up are on the outside of the flywheel.

Get some epoxy glue and stick the magnet back on! A simple fix, and will work!

Like canguy says, inspect the stator. I've never seen one toss a magnet without damaging it. A lucky man you would be if the magnet dropped out when the flywheel stopped spinning. The regulator may be toast as well. It is an easy test when you get that far. As rusty says, you can re-glue the magnet on. However, i personally would be concerned of the likely hood of losing another magnet into your nice new stator. You can run it- but the battery then becomes the sole provider of power for the carb solenoid and electric pto if whatever this is has them. The proper repair is replacing the flywheel, stator and regulator. Just look closely that no damage was done to the mounts/ block in the stator area before you order. The parts aren't that pricy for a worthwhile piece of equipment.

The stator does not look to be damaged physically. Can we check the windings with an ohm meter for damage? I'm wondering if maybe the magnet came off while removing the flywheel itself?

Stator can be checked.

Since you have the charge diode in the connector, resistance should be infinity in one direction and approx. midscale in the other direction on the RX1 scale. (other test lead to ground)
Lighting coil should be 0.15 OHM. (Yellow lead)
Remember to allow for thew resistance of the leads.