Results of experiments so far.
Both wheels spin freely and no brake binding.
With chain disconnected the pedals spin freely and soundlessly forwards but there is resistance and noise to backpedalling - doesn't sound like a bad grindy sort of noise though.
Pedalling forwards for some considerable time did not trigger the problem.
Connected the chain and did the same experiments - bike was in a bike stand so there was no load for the torque sensors to pick up so the motor didn't cut in on any setting. Did 2 miles (off the ground) and still no sign of the problem issue.
The chain and cogs and chain ring did make more noise than I'm happy about. The chain is showing .75 wear so it needs changing (I'm waiting for another owner to confirm the normal length).
The rear cassette teeth look fine. I thought the chain ring was worn as most of the teeth are pointed. (pic attached) but then found an article that said single chain rings are made with pointy teeth. But then again I found this pic of a Bosch ebike chainring and it has FLAT headed teeth - was mine like this originally?
Here's a pic of mine: