First, What the heck is an outboard bearing?
Second, while you are correct that the aluminum flake in the oil has nothing to do with how it was used, your reasoning is an odd one that I have never even heard of.
Easy. Out board bearing as opposed to inboard.
Self explanatory I would have thought but it's in relation to the position of the piston conrods, to the support shaft bearing.
On a compressor crankshaft with three support bearings, when you have one at each end (end bearings) and one in the middle then it's a central bearing. But if its offset (to one end) then in relation to the piston relative to the conrods then its either inboard or outboard. (nearside or far side, outside or inside, take your pick its all the same just a method to describe positioning)
Used when discussing a compressor crankshaft as opposed to an engine crankshaft. Or were you thinking I meant "outboard" as in motor the sort you use to drive a boat LOL. Not to be confused with "Waterboard"
Bit like "Shaft Rotation" although it can only be either of two ways, right or left handed you have to add "When viewed from the flywheel" or in the case of a motor "When viewed from the drive end" in order to verify correct rotation.
If you want to look deeper into the problem with the MCH6 design it is the drive torque against the intermittent piston rod loads, crankshaft balance, inertia weight lightweight design and high RPM all putting a radial deflection on the shaft against it's axis of rotation, this is then all taken up not by the three bearings equally but by one. This particular bearing not being central, and by its position is described as "outboard" of the piston set.
Another of our "quant" terms with compressors is "overhung" used to describe another poor compressor design where two bearings are used, a heavy flywheel counter weight pulley counterbalances one end while the "extended" or overhung shaft where the conrods attach at the other. Again the conrods are attached "outboard" of the far side support bearing when viewed from the flywheel.
Clear as mud, but it makes sense to engineers, Its a British thing I guess.