Hi Dennis thanks for the continued follow up and advice, very much appreciated!
I checked the coolant level and its still topped up so I'm not sure what created the grey coloured oil.
One friend suggested that possibly the engine leaned out (ie: bubbles I saw coming from the second in tank fuel pump), overheated causing the rear wheel to lock up. Although when it happened the first time, I fired the bike up right after I coasted to the curb. Then I went on the longer faster ride out to Heyer road and it didn't lock up again until I was at the Bon Voyage which was a longer test period.
I'll check the colour of the spark plug and do a bore scope for more intel.
I was afraid you would say that about local mechanics, I've heard Andrew is good at KTM but I need to find out his last name so I can contact him away from the shop to see if he does anything on his own or can recommend.
Any thoughts about the grizzled Aussie (?) fellow at NR Motors, I know he works from home as well (he told me he was the mechanic for a bike race team in Alberta)? Is he still there, I know he was not overly happy with the NR folks (neither was I when I took my DR350 there to have a carb needle installed a few years ago, yikes!).
Well when I say I'm a complete Newb, there is some background to that statement. I've "dived" in many times before, farkling up my many bikes (I have 3 right now), deglazing the clutch plates in my CB500x when I got the clutch too hot trying to get through Chilcotin mud on the West Pavillion Rd and trying to hop over slide scree on the Texas Creek road. I also tried to replace my CB500x clutch rings when I put that mis-lableled car oil in the crank 2 winters ago. I got the bike back together but the clutch did not did-engage. So I called my experienced buddy over, he repacked the rings still did not work, he took it apart again and then it worked, WT Frick?
I've tried to do my own work many times and its turned out ugly enough times that I've resigned myself to calling in expert help now.
Here's another example, I wanted to check my valves on my '96 DR350, so I tried to take the spark plug out, I ended up over torqueing the plug and breaking it

so my nice buddy opened up the case and he put in the 385 bore kit for me.
Oh here's another one, I was installing an aftermarket skid plate on the CB500x and it needed a metal rod inserted into the rear part to secure it to the anchoring point. It turns out the one supplied was a bit too large in diameter but I didn't clue in until I had used a hammer to drive the rod into position, then of course I could not remove it to lower the skid plate so I could change the oil.

Oh ya then there's my DL650. I installed a 12V plug and some lights via attaching to my battery. Then I saw a wee bit of smoke, thought nothing of it as everything still worked. I rode the bike to Kamloops in preparation for a 2 week ride through the States but then bike would not start so I got it to Kamloops Suzuki and it turns out wires in my harness had melted and they had to install a new harness (they were surprised the bike did not catch fire) and then a few weeks later the Stator went

Even when I repeat a job, I've forgotten what I've learned the first time and things go bad.
So despite my best efforts experience has shown I don't have that "
what will happen if" perspective/gene that prevents bad things from happening when I touch mechanical things. As such I resign myself to changing oil and taking my tires off to have new ones installed by Auto Magic........
I've searched Ebay for a used engine which may be simpler or even a used CB300R/F motor as its almost a direct plug n play and the extra torque would be nice. But alas nothing came up.
As I said I have 3 bikes here (and one in Mexico), one for long distance touring (DL1000), one for distance ADV riding (CB500x) and then one for local dirt/road riding (suppose to be the CRF).
I'll update things when I find out more.