Its not the teeth that transmit the power, it is the tension on the belt. A slack belt will shear the teeth off. Why the belt slackened off could be due to the soft dynamo sprocket, or simply movement of the dynamo. I mark my dynamo/crankcase and it is a simple matter then to check the marks stay in line. Like all belts, they need checking from time to time, tho' it is tempting to fit and forget.
Swarfy.