IMO.....its POSSIBLE, that the rotating field windings are shorted, either to esch other or to ground, thru the shaft to ground. The other possibility is the brush holder is grounded or has a LOW resistance to ground. The voltage regulator controls (varies) the field voltage (and current) to the brush holder or both brushes, and the alternators rotating field. if it's an isolated field alternator, to control the rotor's magnetic field and ultimately the output VOLTAGE of the alternator (the alternators output current is design controlled thru the impedance of the stator windings and the diode capacity). The field voltage and current to the rotor is in the neighborhood of 5-7 volts and several amps. If these values are exceeded, due to short circuited windings or low resistance to ground, the voltage regulator will suffer or fail. Check the alternators FIELD WIRES FOR GROUNDS then check the alternators field windings and brush holders for low resistance to ground. Just a few additional thoughts......
BOB RENTON