‘69 C3-Strange charging system issue

Sure hope someone can give me some pointers.
When driving to the parts store yesterday I noticed my battery gauge pegged at +40. By the time I arrived at the parts store things started to smell hot. When I turned the car off the starter sounded like it was running. Solenoid was not engaged with the flywheel. So I flipped the battery disconnect open. My alternator was also very hot. When it came time to leave I reconnected the battery disconnect and the starter began to run but not crank the engine. After disconnecting and reconnecting the battery several times the noise stopped. However the car would not crank. While waiting on the tow truck I noticed my water temp gauge was pegged all the way down where the needle was pointing at the P in Temp. After a very expensive ride home I started troubleshooting the issue. When I connected the battery the temp gauge retuned to normal position for a now completely cool engine. Removed and bench tested the starter. It would only click. Swapped out the starter this morning and the car cranks and starts as expected. However, the battery gauge is pegged over at +40 when I started the car. Had the alternator checked and the parts guy took me it was toast. Installed the new alternator and the battery gauge is doing the same thing. Checked the voltage at the alternator is putting out 14.89 volts. Checked the voltage at the battery and it is 13.24 with the car running and 12.2 with it off. When I unplug the connector on the alternator the idle speed increases slightly. When I plug it back in the motor loads up and the idle decreases slightly.
I have checked all my connections and have not found any bad or burnt Wires.
Any idea what could be happening?
1. Bad VR in the new alternator?
2. Could the battery be damaged from the overcharging?

Car is a 1969 350/300Hp. Only electrical mod is a Holley Sniper kit with an in-tank electric fuel pump.