@stuck amals stopped by to see me yesterday.
His case has no crack between the bearings. However, a gorilla worked on it at some time in the past. The dreaded ball bearing was in it and in shocking good shape (of course, not going back in). The hole for the layshaft bearing showed gorilla damage and will require some cleanup and bearing fit compound.
The sleeve gear bearing hole is not as tight as it should be but at least not gorilla damaged. The sleeve gear had two bushings, but both were all the way inward and worn so the sleeve gear could rock on the shaft quite a bit - probably what made the sleeve gear bearing looser than it should be.
All gears and bushings inspected. Replaced the sleeve gear with a good used one and replaced two
bearings gears with a good used. In the case of the original question, that gear is good - that's a metal flaw that was there when the
bearing gear was
case cut and the mating
bearing gear is perfect. Edited out the "auto complete" mess I missed while writing.
Checked the main and layshafts for straightness - both are some of the best I've seen - no measurable bend.