Help solve Exhaust/Suspension Interference

Here's the picture. It's the original arm. I took a video to show the play but can't post it. So screen shot a close up of the play. It's about 1/16 of vertical play. The play is between the inner diameter of the arm and outer diameter of the bushing.
CF3C4713-5A0E-46F8-ABB9-6941709C7F7B.jpeg C1E39646-84C9-41D6-921B-9A3E1B8F608E.png 47D63968-29DB-4167-AB8E-E6FA44618C55.png