so is this wore out or what

Please use correct terminology in this discussion.
The STEP looks clearly machined, and I agree with idea that is was machined to fit an incorrect pilot bushing. Check dims, and reuse if clearances are correct with existing bushing / crank. Or replicate in a new crank with a new incorrect id bushing.

The GROOVE is a mopars 'code' for the 3.09 gear ratio, is no 'problem'.

red