Looks like there's a wear ring on the shaft right by the hole that needs dressing off.
Can you back-off the slave (or just remove it) and then push / tap the arm gently towards the fully engaged position, then inspect again.
The bearing should pull away slightly
Can you back-off the slave (or just remove it) and then push / tap the arm gently towards the fully engaged position, then inspect again.
The bearing should pull away slightly