If NG drops below 46%, immediately cut the fuel flow, below 46% there isn’t enough airflow through the engine to support combustion, it would create a wet start, hot start or hung start. You probably could perform a normal start by delaying fuel just fine. Getting chips in the engine oil is not realistic in such scenario, that would indicate wear in the reduction gearbox (usually the chip detector is placed at the bottom of the gearbox), in your case nothing happens with the gearbox whatsoever. I think the devs just programmed a generic “engine damage” scenario and applied it for exceedance of any engine limitations.
If you firewall the power lever and exceed redline torque there could be something breaking down inside the reduction gearbox, the engine should have some transient limitations for 20 minute, 5 minute, 20 sec, 5 sec and never exceed (depending on engine type). So slightly going over torque or ITT limit won’t immediately blow up the engine. Over torque might cause damage to the gear box and cause “chip detect”, over ITT will cause damage to the engine hot section but likely won’t cause damage to the gear box, so no “chip detect”. No idea what the crackling sound is supposed to represent, damage of the engine compressor section?
I flew for a company operating multi-engine turboprops, one aircraft had a chip detect light illuminating on one of the engines, I don’t know how many hours / sectors they continued flight without maintenance action but eventually the gearbox failed, probably one gear got worn and produced metal flakes, eventually a bigger piece came loose, fell in between other gears which broke into pieces causing a cascade through the gearbox, turning it into soup. It is usually something which happens over time though, even when exceeding engine limitations.