That sounds about right. I checked the pulleys this evening ad they are solid. When I pick up the deck by the hooks, the arm closes the gap and comes in conact with the pulley.
The mower repair shop said it could just be that the brake pad is worn out. When that happens, the arm gets pulled up toward the pulley. The pad is down to bare metal anyway, so may just replace them as a start.
I have just the one picture from the 6th post to work with to reinstall the spring. It may be good enough, but if anyone has something better/additional/written installation instructions/etc.
I installed new lever/brake arms on both sides since the pads have worn through. Upon my first test, I heard bad sounds and saw sparks again. It appears that when the deck is installed, the lever arm closes the gap. I thought perhaps a spacer was missing, so I pulled the deck and removed the pulley. Well, there is a missing spacer, but I think I found the real issue!
I'm going to order a backup since they apparently don't last forever. I replaced both sides a few years back so I'm surprised this one grenaded. Btw, can someone confirm how many spacers are supposed to be installed? I have 1 on the top side of the pulley bur none on the bottom on that side. There are 2 (1 above/1 below) on the other side. The schematic shows 1 below only.