Alternator or VR issue?

IF this was tested at same time as when the battery positive was 12.3 Volts, this suggests a signficant amount of resistance between the battery positive and the mainsplice, or poor grounding.
Diagram this.
Typically the ignition will draw a couple amps, and the rotor will draw a couple amps. The ammeter's needle will indicate roughly 5 amps discharge.
With alternator not working, no current is flowing in the output wire (R6). That wire becomes an extension of the meter's test probe.
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A half volt drop between the battery and the welded junction (solid dot) with only 4-6 amps flow indicates high resistance between those two locations.



IF these measurements are all done at the same time, same conditions (engine running, alternator not working), this is a useful diagnostic.
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If the voltage from the welded splice to ballast is also 11.8 volts, then there is little resistance between those two locations.
(or there is no current flowing. if the engine is running, then current must be flowing)

With key in run, nothing else on, Chrysler considered 0.4 Volt drop from the battery to the ballast as acceptable.
But this was measured directly so as to eliminate ground losses. So you could allow another tenth of a volt without getting too concerned.
The big question is whether power is getting to the alternator's field terminal. And if so, without a major loss.

If the regulator sees 11.4 or even 12.4 volts at the ignition terminal, it should allow full flow through to the alternator's field terminal.

A quick way to check if the problem is in the VR is to jumper from the VR ign to VR field terminal.