Looks like abnormal downward force on the gear, thus into the cover. Do you have a an old-school rubber hose on the distributor shaft to prevent intermediate gear (timing) movement? What does the intermediate shaft bushing top side look like? Check the to see if the shaft has slipped and walked down the gear.

I don't think it's garbage related. It looks assembly related of something has moved around. Do you have the correct intermediate shaft installed? Is it possible you have a longer Milodon shaft installed?

Wedge and Hemi using Milodon Oil Systems with a steel high volume oil pump or Milodon #21814 and dual line spacer:
#21001, #21150, #21160.
Overall length 8.562", 7" of shaft out the gear.
-Steel Gear
21500
-Bronze Gear
21520


Wedge and Hemi using Milodon aluminum pump #21815. Use with Milodon Oil Systems #21175, #21185, #21190, #21195.
Overall Length 8.187", 6 5/8" of shaft out the gear.
-Steel Gear
21503
-Bronze Gear
21523


Wedge and Hemi using stock-style pan and tube pick-up. Also used with Milodon Oil Systems #21000, #21010, #21100,
#21110 and systems using a stock, Keith Black or Milodon #21814 pump.
Overall Length 7.875", 6 5/16" of shaft out the gear.
-Steel Gear
21505
-Bronze Gear
21525