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For sure. This is a problem area, sure wish the stops on the armature link and vertical shift rod were more robust, but are prone to wear. Once this happens, the roller will come off the cam just as you describe. This is a very dangerous situation that will more or less “lock” the engine at WOT, YIPES! So, it is best to replace those worn parts if possible. I wish they had engineered this with a little more room for expected wear.
Did you resolve the vertical slop issue here? Was the threaded aluminum retainer installed upside down? Needless to say, the vertical slop issue must be addressed for the ignition system to work correctly.