David Beach beat me to it!
We assume that everyting worked correctly, until you changed the single channel AVR to a dual channel.............
The AVR will be in voltage control mode from the point when excitation is applied (switched on) during the turbine start sequence UNTIL the point of synchronisation with the grid when the AVR should be switched to Power Factor Control mode.
Assuming that your synchronising breaker is the generator breaker, then there will be auxiliary contacts on this breaker that are used to switch an input to the AVR Power Factor Control module (this is probably part of your AVR unit, in the old days it was often a separate item.)
If this connection fails for any reason, or if the AVR is not set up during commissioning to accept this input, then the AVR will remain in voltage control mode. Assuming that the grid voltage is lower than the AVR voltage set point, then the AVR and generator will increase excitation and thus generator current in an attempt to raise the grid voltage.
So you will see a rise in generator current and a strange, usually low power factor.
If the generator is much smaller than the grid capacity, then it will not be able to raise the grid voltage.
If the grid voltage is high, then you will see the opposite effect, a low generator current, or a high reverse current, as David Beach says.
I agree with David Beach’s recommendation, but I notice that you have changed from a single to a dual channel AVR. This may be the cause of the problem, as the breaker auxiliary contact is not connected, or there may be some AVR setting required after the wiring change to accommodate the AVR change.
As David Beach says it may be telling you that it is in PF control, but it is not!
So check your wiring from the breaker auxiliary contact to the “power factor control enable” input to the AVR. This may have another name like “breaker status”.
If you can rack the breaker out into “auxiliary mode”, i.e. with the breaker disconnected from the busbars, but with the auxiliary contacts engaged, then operate the breaker to closed position and see if the AVR is switched from voltage control to power factor control.
There may be an indicator on the AVR to show which control mode it is in.
You say “as soon as we manually tripped the grid breaker the gen amps came to normal at home load”. This makes me think that you have some local / home load and the grid connection is a separate breaker to the generator breaker. So your control system to enable the AVR to know whether the grid is present may be a little complicated, as you may have two possible points where you can synchronise, or more likely a grid breaker that you do not close if the generator is already running in island mode.
You may have some form of interlock to prevent incorrect breaker sequence
Do this all with care! We can only give you guidance, as we do not know how your plant is connected.