Mopar Performance P3690715 Shaft Diameter

I have used this part number in a couple 360 engines and it always had plenty of clearance in that area, which should never touch the block itself.
Check your block carefully. Maybe Chrysler had different machining specs for blocks in Australia, or something is damaged in the block around that part of the shaft.
The shaft itself is not the problem here, if it has contact all the way around.