You need to measure the clearance on that servo. If you can't get the clearance I'd be lengthening/shortening the pin to get it. Put it in without the spring and seals if you can get them off without damaging them. Way easier to get it in and out for adjustment, then when you get the clearance you want, reinstall the seals and spring and take it for a test drive. This way you can measure between the cover and retaining ring to get a clearance number with a feeler gauge. Do you know what material is on the band, if it is stock width, what your line pressure is. All of these things make a difference in each person's idea of what the clearance should be.
Could be miss adjusted clearance, broken band attaching lug, broken pin, or smoked band. Hard to say over the internet.