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Any grinding should be to the other side, imo.Maybe it's the way the picture is taken but it looks like your clutch is actually protruding outside the drum...can you confirm that ?
Maybe I can grind more off of mine
Ernie
What is the height of the protruding section?
I took a pic of the distance between the drum and the oiler. What is yours?
Clutch shoes may be slightly proud but the nut portion sticks out nearly 1/4”