@psyblue, thanks for sharing that. I did some 5V short-circuit tests on a V0.6 Duet 3 and found that L4 overheated and started smoking fairly quickly. I did this several times, but for no more than about a minute at any time. No components failed.
The problem was that the actual internal current limit of U10 turned out to be much higher than its rated output current. As a result of these tests, we added a 3A PTC fuse feeding 5V_EXT on the latest Duet 3 revision, and increased the rating of L4.
I am still surprised that U10 failed on your board, and I suspect that the flyback diode may have failed first.