Dargo,
Hmmm. Let's compare the 2 for a minute.
Bentonite doesn't get hard. It expands significantly when it gets wet which is its primary benefit as a sealant.
When you posted a few days ago (talking about the lake) "pretty well turned the dirt in our dam practically into concrete." Were you actually into the grey stuff (be it bentonite or vermiculite)? If so, I wonder if they had used vermiculite in whole or part on that project.
I'm not very familiar with vermiculite but based on your experience with the pool, it sounds like it does.
Back to the pond issue as it relates to varmints.
I used bentonite in the burrows the muskrats dug between the pond and the creek (only a 4' separated the 2 at water level). If they hadn't already punched all the way through, you could stuff the bentonite in the hole by hand. If on the dry side (they came in from the creek, which was rare), I would pack a bunch in then just cover the opening with dirt for esthetics. If it ever got wet, the bentonite would expand and immediately plug it. When they poked through from the pond side, I just took handfuls under water and stuffed in the hole as best I could. In either case, the muskrats didn't like the stuff and avoided the area.
If the muskrat had punched all the way through there's a couple different processes.
If no water flowing through - just stuff it full from the ends.
If water flowing through - using a sandbag or something, block the flow. Dig in from top and pack a lot of bentonite inside. When it gets wet, it'll fill all holes when you remove the sandbag.
OK, now moving on to your island issue.
Since it is an island and no water is really going to escape, it sounds like you could use either, as well as concrete. I had used concrete on other muskrat holes (away from the creek). Unfortunately, with any of these options, they’ll just dig elsewhere on the island. You may need to revert to the 7mm.
To haul your dirt/bentonite/concrete… (whatever you use), it sounds like you need an Argo Conquest or equivalent added to your stable.