pilot bushing problem

they don't recommend lubricating the pilot bushing, as excess lubricant can contaminate the clutch surface. And the bushing is supposed to be made of an Oilite/bronze alloy which should not require additional lubrication.
I can't vouch for manufacturing tolerances on replacement parts anymore, but it sounds to me like you have a non oilite bushing, or that the outside diameter may have been a smidge too large and when driven in it collapsed enough to cause insufficient clearance to the input shaft.
The easy cure? Use a pilot BEARING from a '90s truck/Dakota- it presses into the convertor register in the crank (remove the offending pilot bushing first), and since it is a sealed roller bearing, it will never require lubrication.
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