I finally corrected the problem today. It was the oil pan flange causing the contact between the bolt and the cover. I bent the flange forward a tad and no more grinding. Thanks for the tip!
Based on just my experience - most of the issue is either a tweaked plate (not flat) or the engine oil pan flange is sticking out too far.
Sometimes just loosening up the oil pan bolts and moving the pan forward is enough, sometimes you have to hammer the flange forward.
Like mentioned earlier, the converter bolts are behind the block.
