I want to stress that this is key to my confusion. This is not just some abstract result; this is a computation that we can perform and draw a real value from.
Of course, I'll now fall back on godel's second incompleteness theorem and say that one cannot prove, inside ZFC, that ZFC is consistent. But if the above turing machine halts, then we proved ZFC is consistent - a contradiction!
Where is the mistake here? My current guess is there is a technical detail in the proof of Thm 1 which uses a stronger metatheory than ZFC to show that the 758-state turing machine halts iff ZFC is inconsistent. This is not a contradiction, because yes, we can run the turing machine for BB(748) steps, but that will only show that ZFC+ proves ZFC is consistent, which is already well known - ZFC + there exists an inaccessible cardinal does the job.
However, I haven't looked at the paper in detail to know whether this is the case. Does anybody who has thought deeply about this problem have insight to offer?
[0] https://www.ingo-blechschmidt.eu/assets/bachelor-thesis-unde...