did I damage AVR (honda generator) ?

I would most likely say that your generator just had a glob of water in the gas tank. It got sucked into the carb and when the motor swallowed it, it choked and died. Or a bit of dirt or varnish may have broke lose and temporarily plugged a carb port. Or an ignition module may be flaky and it quits when it get hot. Or it could be a valve that is sticking a bit because of varnish buildup from disuse. Normally, when you have a direct short, it will trip the breaker. A little bit of a burnt oil/electrical smell is normal on a generator that new. It is just baking out the stuff from the enamel on the coils.
If it puts out proper voltage, just run the dang thing. And run it hard. That will get it cleaned out if it's a water or varnish problem. If it's a ignition coil problem, or oil shut off problem it will become evident with a little hard use.
If the varnish in the carb is really bad, the carb may have to be cleaned.
If it shuts off at a predictable point while warming up, then it's may be a flaky ignition coil.
Also try disconnecting the low oil kill wire. Just because the oil is full, doesn't mean that the switch isn't malfunctioning and killing the engine at random.
And remember. Hard use, as in 5000W or more. Let the engine breath.
And above and beyond all, it could of just been a some water on the spark plug. Yes, it has a plastic gas tank above it, but it is not water proof by a long shot. That type of generator is not designed to be ran in the rain in any way shape or form. In a good rain, that thing will be soaked.
So just run the dang thing and don't worry about it! :-)
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