I had heard of this issue before. But also heard people say it rarely happens. Usually torque -y motors or just hard pitch pumps and such. It is supposed to be a little defect in the otherwise proven 700 align design. The clutch has too much clearance from the clutch bell, so it has to fan out too much to engage . That causes stress and a torque full motor with a lot of torqu changes tend to put wear on the metal and it fatigues. So yeah... Here it is
I am ordering a heavy duty Lynx clutch made for the 700nitro. Should be a simple fix .

the clutch shoe material seems ok still.