Anyone experienced issues a bottom of crankshaft where PTO Clutch is attached with sheered key way? Also a small pice of shaft was sheered away as well. I am exploring all options before I remove engine. I want to know if that piece is removable because it is below the main drive pulley and looks to be pressed on but not sure will no more once I remove the engine......
I have not experienced a sheared key in a PTO clutch yet. That could be a tough one. On your model, it is pretty certain the key is an integral part of the "sleeve" inside the two halves of the clutch. There is a bearing in the coil half and one in the lower half. This sleeve is a slip fit to the engine crankshaft, but is a press fit in the upper, or coil part of the clutch. The sleeve rotates with the crankshaft because of the key, and the bearing allows it to revolve within the clutch halves. It is not unusual for the sleeve or the bearing to rust or become "one with the crankshaft". A sheared key or damaged keyway in the crankshaft would make the same problem even worse.
Normal service or replacement of the clutch does not require engine removal. On the other models I am familiar with require the clutch and the traction drive pulley to be removed before the engine can be removed. The hole in the frame is not large enough to clear those parts. The LX277 might be different, I dunno.
Penetrating oil, a puller, and lots of patience are your best tools for removal.
Is it possible that you could post a photo or two showing what you can see so far? It might help us come up with ideas to help you solve the problem. Should add that the traction drive pulley should have a removable square key of it's own. It should not protrude beyond the length of the pulley hub. Good luck!