using a lathe for this type of bush is not the way to go,..
It should be honed, as honing is far more accurate and is far better at producing round holes than a lathe ever will. but also creates a cross hatch pattern that is much better at oil retention, there will always be a little oil escaping between the tail and bush.
The larger the clearance the more oil that can escape, so too loose and you get oil leakage, too tight and you get seizing and resultant damage.
The new old stock gear I used didn't appear to have any honing markings on it.
Honing can be from quite course to very fine ie a diamond polish finish with no marks to the naked eye, I usually rough them up a little on a honing machine and use a lithium grease the grease stops them from overheating on startup then polishes up to a smoother surface which then reduces friction and any further issues are eliminated
but looking at yours the front bush looks like its a different material, higher copper content, which would also be softer and more prone to damage from load and or heat.