Welding machine help needed Hobart

Sounds odd Capacitor ,Transformer the capacitor should not limit the output to such an extent & if the transformer was shorted it would be blowing fuses is the damage physically evident.
The problem with a lot of these smaller machines is the torch cable people pull the machine around by torch & damages the conductor cable inside the current then goes through the welding wire to the tip rather than the copper conductor resulting in a small spark & sticking of the wire as it welds itself to the liner 1 way to check it is to removed the torch & connect it to a 12 vdc battery then connect the other to a jumper lead & try to start a car with it if you just get a click at the starter you will find the lead is bad.
We repair a lot with the same fault mainly the Lincoln SP170 & Miller machines