I have pics just trying to figure out how to post

 

 

Something going on in there with the evidence you have.
I would remove the case cover and inspect.

Is there any side to side movement on the clutch basket?

 

Is there a way to check that without taking anything apart? just stick my finger in there and see if it wiggles?

 

No movement with my hand or while pulling the clutch lever

 

I just replaced my oil I was going to wait for the next oil change to do the doohickey upgrade was kind of hoping it would make it until then but if I have to suck it up and buy the extra oil I guess I will and crack the whole case open while I'm at it I like to drive it weekly/daily though so it's going to kill me having it off the road till then

 

Is that the only finger on the clutch with marks or are they all like that?
The clutch hub is aluminum.
The magnets in drain plugs can only attract steel/iron particles from piston rings, cylinder wall, gears and the inner driven clutch plates and they will always put paste onto the magnets.

I'll suggest the grinding noise was from tire, fender, muffler, chain was induced by the weight of the passenger, being as you haven't heard it without a passenger onboard.

 

Yes actually I rotated it with a starter and it is the only finger with scratches on it what is the significance there? I really hope you're right about the fender rubbing or something like that

 

I replaced a frame bolt that is right above the chain the bolt is a hair too long and it may be touching the chain with two people are on it I can't find any wear on the chain or bolt though

 

I did the same thing with my KLR. Took me a few minutes to figure it out. Swapped old bolt back in..... sound gone

 

Removed bolt adjusted chain nope I took it off road and I got the same kind of grinding almost clutch slipping type feeling when I was riding it hard off road as I did with two people also going back to the scratches only being on one plate what is the significance of that and where would the scratches have come from in the first place there shouldn't be scratches on the inside of my engine I'm almost sure of it

 

Use some punctuation, dude. It’s hard to understand what you wrote.

 

Sorry I don't internet or write for a living I break things with a jackhammer and I ride my bike fast punctuation isn't one of my strong points

 

The 'scratches' on that one clutch Basket Finger had to of happened Prior to assembly of the engine. They are of NO Consequence, IMO.

 

Look for paint wear on the inside of the muffler, indicating that the tire hits it at close to full compression. I ride almost 99% 2up, it only takes a slow speed drop to push the muffler into the tire path.