Does my knuckle need centering?

[RPN]

I overfilled my front diff and had soup getting out via the felt seals so pulled my knuckle apart to replace the axle seal.

While in there I noticed scoring on the birf, and corresponding gouges on the top of the knuckle housing.

I guess this means the knuckle height is incorrect.
Can I reset it without the Toyota tool, or is it a must have? Or, have I misread what I'm seeing?

Thanks for any suggestions.