The chick died overnight.
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In case you can't make it out, the head is in the top left quarter. It was a mal-position since its head is not under its wing. The chick was in this position when the internal membrane was intact, it's only movement was to open and close its beak, and it's belly moved as it's heart beated (or it breathed).
So to answer your question, as I tried to peel the shell back there was more than a little blood. It was far more than there should have been if it were merely remnants in the membrane.
Unfortunately, I totally failed to consider what the moisture inside the remaining shell was going to do...namely, cement the chick in place. If I'd have considered that last night I might have gone ahead as @WalnutHill suggested...but as @scflock rightly pointed out, I'm not sure why I was giving this guy so long in the first place. I can only say that when I did the float test and saw this one egg moving so much, it seemed like a good opportunity to look into assisting. Sucks that I failed, but it was at least instructional.
Thanks for all the advice.
Sorry that it didn't make it. I've become quite experienced at assisted hatching thanks to my crossbred turkeys, but even so I lose some with too early or too late an assist, or with moisture control.
I used to advocate using a moist paper towel around the shell to help retain moisture but I found that in a forced air incubator, this causes a chilling effect that can also kill the chick. I do think the inner membrane may have dried a bit overmuch after the shell was breached, and for that, so long as there is an internal pip, I use a petroleum based antibiotic ointment and swab it on the membrane. It will preserve the existing moisture nicely.
I don't know why that chick had such prominent blood vessels at that time and stage. I am sorry for the loss of the chick but as you said, you do gain new insight and perhaps the next time you have a challenged one you'll have a better outcome.