The oil pump shaft 'loop' should be loose, rather than tight
It's not designed to support the shaft while the engine is running, just to hold the shaft in position when it is not clamped / held-in-position between the distributor and oil pump.
Basically, to keep the shaft from falling out until it is positioned to attach the oil pump to the distributor.
When the oil pump is bolted in and the shaft is in and the distributor is installed, the shaft should NOT touch the loop.
Have your machinist check that it isn't cracked or damaged where it would interfere with the driveshaft when it is spinning.
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