I would expect to see the rear edge of #5 bearing tore up if the problem was the radius contacting the bearing. Instead it looks like either the block bearing journal was machined smaller at the rear or the bearing was thicker at the rear. Possibly the guy running the hone was pulling up short or there was another problem? The journal size can still be measured to rule this out. Also, a short radius touching the bearing would attempt to spread the bearing and damage would be much more centralized at the rear. I use Clevite bearings because the FM Babbitt thickness's were all over the map while the Clevite's were much more uniform, but...
How did #4 thrust spin 1/2" or so and the tangs are still perfect?
Don't think we will ever figure out the plugs closing up or the chipped cam gear.
Just think we're going down the wrong rabbit hole chasing the position of the rear bearing.
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