This starts to sound like the old "mechanic in a can" discussion again.
Loctite is NOT designed to replace worn out or damaged parts. It is meant to be used as part of the design to reinforce a bond. As others say, it is not meant to be a shim.
There are a number of things working against Loctite. First is that it is running in oil. This will compromise the bond. Stress on the parts will also compromise the bond. Heat is another enemy. Actually, that is how Loctite bonds are released in many cases - by heating them up.
The machining and sleeving are so far the best options short of just replacing the damaged shaft. Cutting it down and using a bearing with a smaller ID is also a good option. After all, you DO want to return this machine to service as a RELIABLE piece of equipment don't you???
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Today's Featured Article - History of the Nuffield Tractor - by Anthony West. The Nuffield tractor story started in early 1945. The British government still reeling from the effects of the war on the economy, approached the Nuffield organization to see if they would design and build an "ALL NEW" British built wheeled tractor, suitable for both British and world farming.
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