I found the pinion gear has some wear, including this worst part (see previous post above with latest photos).
The thread for this post kind of ran it's course so was trying to bring attention to this. I'm hoping I can just go with it. The ring gear looks great.
To everyone who replied, thanks for all the advice.
I think if that chip is the worst of it, I'd knock the sharp edges off with a file and set it back up and run it. Of course, as already mentioned, there are no guarantees.