Problem solved
After climbing the mast, looking at diagrams and beating my head against the mast I finally found it. No, the beating the head didn’t work. I did run a borescope up thru where the halyard came out on the bottom of the mast. I taped it to a fish tape and found where one of the lower shrouds hook in, it had pinched the halyard to the mast. We had the boat re-rigged in the water. The strange part was it had been stuck before re-rigging. My guess is the shroud had been replaced before, the halyard got stuck and during the re-rigging, it stuck in the same way. After loosening the shroud, popping the halyard out and tightening the shroud back, everything works.