The motor bearings are shot - the previous owner probable either didn't oil them regularly, or got them wet and they rusted. You can get replacement bearings from various sources, BocaBearings is one although you can beat the maker's prices if you look around on eBay etc. Or replace the motor - the Leopards are a quality down-grade versus the Castle, although they can work well.
One comment - you thought you were being easy on the boat by running at part throttle, but in reality that is extremely hard on the ESC. It is best to limit part-throttle running on any boat, especially those with higher amp draws. Counter-intuitive yes - but fact nonetheless.
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