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This is what happens when you aren't CAREFUL. The only way that cover gets pinched is by putting the saddle under it. The saddle should go slightly behind it and not be touching the edge of the cover.
i also use a block of wood I kinda fabbed something up so that it supports towards the front of it. kinda looks like a step. I also stay away from the cover dont need to bend it.
I've seen some differential covers that don't have an edge hanging down over the bottom of the diff itself. You don't have to worry about pinching those because it doesn't get in the way.