Chaincase observations.

I don't think the gear is magnetic but rather the speedometer pickup is a magnet that senses how many teeth go by and sends a signal to the speedo on the dash.
on my sled at 6200 km those magnets were coming out and wearing on outside of case. my dealer had one saw threw the case
 
You should check the upper gear bushing for wear. Some get worn out quickly others don’t. Might as well pop it off and see if the grey coating is worn through to the brass.
Can we get the upper gear off without taking the bottom snap ring and bottom gear off
 
on my sled at 6200 km those magnets were coming out and wearing on outside of case. my dealer had one saw threw the case

If you mean the magnets were wearing the inside of the case - that is usually caused by filings clinging to the magnet that rub against the inner chaincase cover leaving a mark.
MS
 


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