I'm running these brakes on a 12 bolt with 9" flush mount ends. I wouldn't machine it out of the backing plate. Remember, this part was engineered to only attach the brakes. We're asking it do do even more in this situation since the C-clip rear it didn't do any axle retention. Machining out for the bearing will only leave the "retainer" weaker.
Another option to machining the caliper bracket would be cutting a spacer out of 1/8" plate. Quick, simple, cheap.
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