There should not be a groove where the oil seal slides, the end of the torque tube should be smooth.
The only way I can think of, to fixing the problem would be to grind the groove out.
Or if the groove is deep you could braze or weld where the groove is, to build it up.
Then grind/file it smooth. Finish it up with some emery cloth.
GM film strip torque tube repair Slides 35 to 45
Note: Older car torque tube u-joint ball housings did not use a screw on retainer cap, just cork packing was used in the end of the ball housing. The ball housing end was formed to accept the cork packing oil seal and washers. Slide 42
Inside the screw on torque tube retainer cap, there should be one O-ring washer on each side of the rubber oil seal.
illustration
