Servo stalls(?) on Arduino IDE sketch "Sweep", what could be wrong?

You couldn't damage anything, there wasn't a circuit so no current could flow.

Two bits of equipment connected by a single wire are simply acting as antennas
for each other, its not a circuit until two wires are involved so (non-RF) currents
can flow.

700mA is a bit close for comfort - servos often take more peak current.