
When there was much fuzz in the oil screen too, at first glance when I got this project, and spied fraying at the ends of the brake lining too, and finding this amount on the mag post (the magneto was working fine), your first thought is drums, drums, drums

So removed the hogshead, and pulled the bands, here is the look:
Reverse lining, Kevlar, seems ok for reverse. Drum is only fair-to -poor.
Low speed, ah, some fraying on the edge....near the brake drum. The low drum is poor too, has some pitting, one pit still had a fray of Kevlar!.
and the main culprit, brake drum. Pitting in many places, and this spot is a busted open pit on the edge. Did in both the low band lining edges, and the brake band lining.
Cause of all that fuzz...pitted drums that shred woven linings. These drums are toast.