Detroit calls for International Compound No. 2 on the threads, which is a special lubricant paste, not Loctite. The lubricant ensures the bolts stretch the correct amount when the bolt is done up, which pre-loads the bolt and lets it develop it's designed gripping strength. You torque the bolts all to 50 ft lbs, to draw the flywheel on and take up all slack in the joint, then twist the bolt another 90 degrees to 120 degrees. That is what creates the correct pre-load. If the crank has been modified and there are helicoils installed in the two dowel holes (per the manual the modification requires helicoils) then don't use loctite in the helicoiled hole. All you will do is glue the bolt to the helicoil, and you'll have the devil of a time getting it out again.
My guess is that someone over torqued the flywheel bolts and they broke. Forget the dowels and all that noise. It is very easy for someone that is inexperienced to realize when a bolt is stretching by over torque that the bolts are ruined which make them weak and fail. When I worked in DDA shops this was commonly known.--Geoff
I am not sure i would ignore the update ...