Hi,
I had this problem first of all many years ago on an A7. It had pretty likely been caused by the brush not being fitted into its holder so that the side of the spring acted as a gentle cutter on the slip-ring. The groove worn was quite deep, like the one in your photograph. My father kindly fixed it by roughing up the indented area with sandpaper to act as a key for the Araldite he was going to apply, cleaning off the roughened area very well with something like meths or lighter fuel, and then applying the Araldite. (This was in the early 60s when Araldite was still something of a novelty). After it had set, he then turned down the built up area on a small lathe till the slip ring looked like new. This magneto gave faultless service for years after.
From what I've learnt since, I'd add the following comments. When I use Araldite to build things up I prefer to use the slow setting variety and cure it in an oven at about 70° C. When treated this way the Araldite sets into a clear glass with no bubbles in it, so that when you machine it you are unlikely to create pockets where you have cut into voids in the glue (if this happens you need to have a second go with the Araldite). To stop the Araldite running or sagging, I leave it at room temperature for about half an hour before I put it in the oven, when it starts to go a bit like a jelly, then when you put it in the oven it doesn't run. Also, in the oven the Araldite queues a lot more quickly, a couple of hours is plenty. When you're machining this sort of stuff in a lathe I like to use a really sharp high-speed steel tool with plenty of top rake.
I agree totally with Brian's comment about aftermarket brushes. There seems to be a lot of variation in hardness. I always have a look around to see if I can find a useable brush that might once have come from Joe Lucas. I remember one of the electrical specialists telling me that soft brushes could also cause problems because they can create dust which is conducting. I have a dim recollection that originally the three types of brush in the magneto might not have been all of the same hardness. Can anyone throw any light on that?