I gather the hold down nut torque spec for the Courage flywheels is not enough, I'm pretty sure Kohler will issue a bulletin for this if they haven't already.
The flywheel is keyed for 2 reasons, one the timing is determined by a magnet attached to it that passes by the coil to induce the spark voltage at the right time as determined by the key's position. Second, the key itself is made from a softer metal than the flywheel or crankshaft end. This protects the engine from severe internal damage in the event something driven off the engine should suddenly lock up- the inertia from the flywheel will shear the flywheel key, throwing the ignition timing off and stopping the engine rather than the engine continuing to attempt to run and bending its rod(s).
-Fordlords-