And if the starter checks out OK, then unfortunately it's your block.
Blocks of that era sometimes had the starter mounting holes drilled in the wrong location, and shimming makes it even worse.
Let's see what Brian thinks first.
I hope not Mike.
More often than not Factory 10 MT Starters were rebuilt 10-100 times by major auto chain stores sent to China or Mexico.
Terrible rebuilds done. Parts not replaced worn out. Inferior parts used.
Often the Chevy & Pontiac V8 Nose cones were Milled off to give a clean surface but too much machined away.
Should have been tossed in the scrap pile.
I know for a fact Pontiac V8 1955-1979 never ever had starter motor shims factory installed.
Not listed in any GM Service Manual to shim.
Tolerances were held tight factory New.
Starter shims came about from rebuilders deviating from OEM specs had to use shims.
Hard to tell what some one has without pictures, watching a video or seeing in person.
I have been told the Best select core Chevy Blocks were in installed into Corvettes.
C/K Chevy Trucks seem to be machined right.
I Love my 1999 Chevy Tahoe 4x4 with its 350 Votech engine.
Power like a 6.0 LS.
Just had to correct the Demo demons in that 4L60E trans, build myself & sink over $1K in new parts.