I removed the cover and it seems the flywheel woodruff key intact.
Last small engine that sheared a key, that I worked on, was a Tecumseh powered lawn mower (sudden stop as the operator "found" a large rock with the blade).
I could see the key didn't line up with its' groove in the crank,
If your Honda uses an actual Woodruff key, you won't see the groove in the crank as the key has a "half moon" shape.
A Woodruff key would require pulling the flywheel, if it hasn't run since, it won't have had time to have spit the broken piece of key out.
I point that out as I can't see the keyway groove in the crank in your picture.
I know you called it a Woodruff key, but I don't know you, and there are plenty of people I do know that call
any key a "Woodruff" key.
I'm not trying to be insulting, just trying to make sure we are all on the same page.
I don't know the modern Hondas, but it sure sounds like an overly advanced flywheel to me.
Not that I have any idea how running a pressure washer out of gas could cause that.
Only time I've seen a engine do that without a sudden stop was years ago in auto shop.
The practice engines (single cylinder, don't remember what brand) had an aluminum crank key.
If you didn't get the recoil clutch/ crank nut assembly tight it would run up to the governor and then stop violently.
Anyone do any work on the flywheel or recoil starter before your troubles?