I always prefered the plastic spurs, cheap so I could have 2-3 different sizes and easily swap them out. I always set the mesh so there is just a tick of play between the spur and clutch bell. Hold the clutchbell with you finger and move the spur, if you have just a little tick your good. No tick its too tight, a big tick and its too loose.
Its hard to say what caused the spur failure from your pic but if the mesh was good then 9 times out of 10 heat was the problem. Excess heat can be generated from several places including,
-Slipper nut too loose. I run with it tightened all the way.
-clutch bell not spinning freely. Should spin pretty much friction free. If not check bearings and somtimes worn clutch shoes will mushroom and hang up on the clutch bell. Worn slipping shoes themselves can also create excessive heat. Make sure the shoes have some life left and the springs are not contacting the clutchbell trying to do the work instead of the shoes.
-Also a long shot but make sure you have the tiny hex shaped washer installed just before the spring on the outside of the spur gear. Without it you will have failure almost immediatly everytime. Years ago I misplaced this little washer and thought it was just a regular round one but many spur gears later discovered that it is not. Lesson learned.