cam bearing issue

Did you inspect that cam bearing bore THOROUGHLY to make sure a bearing has not spun there in the past? Also, is that .004" feeler gauge the largest you can get in there? If that bore looks good like nothing has ever spun and .004" is all you can get in there, I say assemble it and go. Remember, that to calculate bearing clearance, you'd need to divide that .004" times two for .002" on either side. I don't know what the spec is, but I suspect .002" would be good. As for oversized cam bearings, the only ones I have ever seen are oversized for UNDERsized cam journals. That would be going towards the inside diameter, when you need to go towards the outside.

The.004 was in an isolated area of the opening. As if something moved while machining the hole.