If you engage it with no belt and engine running, and it doesn't spin, it's bad. I don't believe there is an adjustment on those.
It should come apart in 3 pieces. The pulley, clutch plate, and a bearing will come off first after the bolt and crankshaft extension come out. You will have to drop it down at an angle to get it off the "ledge" on the one side of the upper housing. The next piece is the metal rotor and is keyed to the crankshaft. The final piece has a bearing in it and the clutch coil. I use the puller to get that off and it doesn't hurt it, but you normally need a lot less force if you remove the piece separately.
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