Hello Brendansarah15,
From my observation it seems that the whole clutch body might be sliding back and forth on the engines PTO shaft as the engine side of the clutch half seems to be missing it's set screws that pin the clutch to the shaft and stop it from moving.
The clutch half you have on this mower has been replaced with the later upgraded version that utilizes two set screws that pin the body to the shaft at right angles.
Can you please physically grab the whole body and see if you can feel movement in it and then get back to us and we'll advise on what is required to be done.
Also on the side of blades, can you please tip the mower backwards and take some good close ups of the reel and where the blades come in contact with the bottom bed knife. I'll then be able to best advise you once I've seen those shots.
Cheers,
BB
