Here's the auger when I pulled it out. The wood is impacted and had to be pried out with a screw driver. I think the impacted wood was preventing the auger from turning freely so the controller couldn't feed pellets fast enough. That explains the grinding noises I used to hear. The new welded assembly does not have a seam where the wood can grab so it will turn more freely. There is a cotter pin in the area of the impacted wood that may be crushing pellets and preventing them from freely pushing out of the area. If it had enough force to start pushing the gasket out of place then it had to be binding up the auger.
Here's another photo of just the gasket
Here's another photo of just the gasket