It does seem like Gord and busbar have identified a likely problem.
I have read where 0.5 micro-Farads per phase is typical value for the 3-pole surge caps in 4kv, as Gord says.
And going through the calc, you get
V_LG = 4KV/SQRT(3) ~ 2300
xc = 1/2/Pi/c = 5300
I per phase = 2400/Xc ~ 0.5
Ic total = 3*I ~ 1.5A.
Compare to your 0.866 ohm resistor. On the primary it looks like 0.866*(4160/120)^2 = 1040 ohms.
Resistive curent = 2300/1040 ~ 2.3A.
You have used up more than half of your allowed capacitive current already, exactly as Gord said. So that does sound like a very fruitful area to pursue.
Some other wandering thoughts:
Simultaneous failure of two motors must be connected through the power system. Sustained voltage excursion, surge (from external source of from first motor failure) or one motor feeding the other as a generator and fault not cleared quick enough. If you have 0.5 sec voltage magnitude recordings on the computer might help shed some small light (waveforms from fault recorder or digital relay are a lot nicer of course).
Even though you say you have ruled out power system problems, are there capacitors nearby which may have been switching? Also utility may be able to provide you info on known activites/trips at the time of your event.
A fault in the first motor creates a steep-front wave which travels and can cause other damage. (it is well known that if you have a flashover during a hi-pot test you stand a good chance of damaging motor or cable at other locations from the traveling wave). One question that crosses my mind... if the large motor failed first internally, are its surge caps effective at preventing the internally-generated surge from LEAVING the motor to the power system? Since the standards make a big point of requiring a surge cap to be connected very close to the motor, I would say maybe not, because those caps on the large motor are not close to the 2nd motor that failed.
Surge caps generally have to be close to the protected equipment and have good soild ground connection to the motor frame ground (don't rely on cap frame ground).
If a turn or ground failure appears to be on the first coil (especially first turn, connection end), that increases the likelihood of cause being surge-related.
Turn failures typically result in a lot of copper melting because they don't trip until they go to phase or ground.
Can they narrow down turn insualtion failure or ground instulation failure and how far in from the terminal? If multiple failures look at how they relate to each other in physical space and electrical connection.
If you see heavy evidence of movement of end-turns in one phase of the smaller motor, I would say that may would support a theory that the 2nd motor failed due to the fault current that it supplied to the fault in the first motor.
Some types of motors are very susceptible to turn insulation problems, possibly even in the presence of surge protection. Those are form wound motors which do not have dedicated turn insulation (they use the strand insulation to serve as the turn insulation).
Our 4kv high-R grounded system does meet the criteria for capacitive current < resistive (at least on paper). We have also had simultaneous failure of two 4kv motors on that system. Cause unknown. (I'll have to look at the report to refresh my memory… it was before my time).