Well that is different.
Apparently the race had spun, doesn't look like much. Maybe it was just from pressure... really wish my stupid book would get here.
The bearing looked ok inside and out, I was cleaning parts last night and noticed the rear retainer plate has seen a better day.
Input and output seals are changed too. Waiting on my book to see if I need different shims for the input bearing (new housing came with one so I have two on hand now), a new input bearing and oil scoop and now the front output shaft bearing and the plate. On the fence on the rear bearing, it looks great but depending on what the plate looked like to start off with it might have ran loose. It looks like there was an indention for the bearing to start with, I don't think it took too much meat off.