Cracked Flex Plate

69 is past the 68 large bore changeover. If the trans is a pre 68 small snout, then 340 may need a bushing. I broke one too before I was aware of the snout size difference. Was the convertor fully seated when you installed the trans, about 1/4 deep in the bell? Perhaps you damaged the pump if it didnt drop in twice.
I do not think that is the issue. I do own the HP book on 727s and it states the converter should sit, when fully seated, about 1/4 to 1/2 past the bell housing, just like you say. Mine sat about 1/2 in. Then when I bolted the converter to the flex plate there was about 1/4 gap, and the book said only about 1/8 is appropriate, so I added two washers to each pad so the converter only moved forward about 1/8. So I am sure it was seated correctly, and I'm sure I did not pull it out too far to unseat it. The prior converter had two washers between the converter and flex plate as well.