Glad you got to the cause of the problem, and glad there's nothing wrong with the snowblower. Going forward, this would be a great time to do a test to see how a grade five bolt would work for a shear bolt. It would be interesting to see how long you could go without it snapping, and I don't think you'd be out anything but the time to replace it. It would satisfy the curiosity factor once and for all.
I think I remember that you said you bought the tractor and the snowblower at the same time. Did the dealer set it up for you, or did you put it on for the first time? The reason I ask is, if the dealer installed it, they should have caught the clearance problem, and also, the first hook-up is the time to make sure the PTO shaft is the right length, as tractors differ in lower arm length, etc.
I had a similar situation on our tractor after I put a 2" trailer ball on the end of the drawbar. It interfered with the PTO shaft of the bushog. Had to remove the ball, as our tractor doesn't have the swinging drawbar feature.
I also hope that there was no damage done to the PTO of your tractor. Were they able to give you any assurances about that?