Initial inspection found overheated and swollen compressor capacitor. Electrical readings of the capacitor are rated at $370 volts with 45 microfarads, the system is reading 10.1 MFD. Upon arrival the thermostat was turned off with no service codes active or in lockout. The LED terminal strip and comforter alert are in standby mode. After replacing the compressor capacitor and testing the ground loop water pressure the system ran good with 87° supply temperature in heat pump mode. Hotwire test run 15 KW electric auxiliary heat and confirm 60 amps Replace two AA batteries in the Waterfurnace brand Emerson multi-stage heat pump thermostat The worn out compressor capacitor could definitely explain the no heat in the heat pump mode condition and possibly a hot compressor at the same time but does not explain any burning smells followed by no heat conditions. All electrical components connections wiring and etc all appears normal in the water furnace envision package system Installed