Shining a flashlight from the bottom of the inner leg instead of the top visibly shows a ledge scribed into the inside of the stanchion leg. That is what the damper edge and damper wiper is hitting on.
Bobby at Answer gave me an RA# and it is on it's way today.
How would you characterize this type of wear on the leg? Normal wear and tear? I am hopeful that they will replace the inner legs and then it will be good as new. If that is the case, I'd consider it really good customer service as the fork is well over a year old and most things in the bicycle industry carry only a year warranty.
Update to follow.