Starter problem solved - new bolts!
When I was bolting the starter on, I noticed that the bolts were getting alternately tight and loose as the went into the block. Further inspection determined that they were slightly bent were the threads are. Replacement with some other bolts that I hand on hand and the car starts right up with no starter grinding.
The bolts in question were the GM 12338064 which have metric shanks and standard threads with dual diameter knurled portion. I had some replacements that came with the starter that worked perfectly.
I attribute the bend to really bad kickback that I had on start ~5 years ago (before EFI) that actually broke the starter nose. Thought the bolts survived OK but was wrong.
Just thought I would pass this info on for others having starter issues. Bolts can be a cheap fix.
Bolt in question (note the dual diameter knurled area):







