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Update. After much research, it turns out Direct Cycle Parts is not to blame. The invoice did show the incorrect part#, but it ended up being the correct one. What a cluster. Why this happened, I still have no clue, as the bolt was installed in the correct direction. Factory flaw maybe? Something missed or done incorrectly during installation? It could be so many things. The tolerance is so minimal, it wouldn't take much to do what it did. The slightest change in the bracket angle would also do it.
Anyway, I'm not going to hire Inspector Clouseau or Inspector Gadget. Not worth it. Chock it up to "stuff that happens". And for the twinkle toes that blame me...well, you know what they say about opinions. This Harley dealership regularly installs aftermarket parts, and they don't have a warranty waiver for their service. There are many parts which they can't source from the dealership, many are well-known sought after parts.
blend out the damage and put some clear touch up paint on it. Inspect it regularly. Blending will remove the stresses to prevent cracking. While you are concerned about safety, maybe in the meantime look for a new swing arm. When I was in the aircraft business both military and commercial depending on the item it was allowed.
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