Pat - looking at your image of the cutter- 'draw a line' from the gullet of the tooth bottom left hand side to the gullet of the tooth above. I would think you need to remove the land out side of that line on each tooth (both sides) as I would guess that's possibly rubbing at depth.
As said before - a sacrificial, tight fitting, aluminium plug inside the bore will help minimise 'break through' burring inside the bore - just tap the plug out after machining.
Looking good - certainly sold on the idea of the scribed line set up.
BTW following a discussion on a control line forum be aware that the Kavan
flexible yellow nylon 8x6 props have been known to shed a blade and particularly so on diesels. Not happened to me but I pass that on in the interests of safety - not only to your self but to the engine too!
You'll be fine with the APC though but do lightly sand the rough edges of the blades before use - particularly the TE as they are as sharp and hard as a razor otherwise. Believe me, skin
always loses
Tug