Spread coconut in an even layer on a cookie pan. Bake 5-7 minutes until coconut is golden brown. Let cool completely.
In bowl of food processor, pulse coconut until finely chopped. Add confectioners’ sugar and pulse until combined.
Prepare 13 in. x 9 in. baking pan with vegetable pan spray. Sprinkle evenly to form a thin layer of coconut on bottom of pan. Reserve remaining coconut for coating marshmallows.
In large mixing bowl, sprinkle gelatin over 1/2 cup water.
In small saucepan, combine granulated sugar, corn syrup, and 1/2 cup water. Bring to a boil over medium heat, stirring until sugar dissolves. Using a candy thermometer, boil until mixture reaches 240°F; do not stir mixture. Immediately pour mixture over softened gelatin; stir until dissolved. Whip on high speed with electric mixer until mixture triples in volume, about 8-10 minutes.
In medium bowl, whisk Meringue Powder with remaining 1/4 cup water until foamy and thickened slightly. Add to gelatin mixture with vanilla, coconut extract and salt; whip until thoroughly combined.
Pour into prepared pan and sprinkle top with another thin layer of coconut. Reserve remaining coconut for coating marshmallows. Refrigerate until firm, at least 4 hours.
Loosen edges of marshmallows and turn out onto a cutting board. Spray a knife with vegetable pan spray and cut marshmallows into 24 squares. Toss with remaining coconut, pressing to adhere.
Melt Dark Cocoa Candy Melts according to package instructions. Reserve 1 cup melted candy. Dip bottoms of marshmallows in candy melts and place on parchment paper. Drizzle tops with reserved candy and refrigerate until candy is set.
Store in airtight container at room temperature for up to 1 week.