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Please see pic attached... do I need to replace?

If you mean you should replace that part because the kicker lever has three notches in it, no, not as long as the 3 reels are getting kicked off and spinning ok. At some point, the grooves may get too deep and you could have them build back up with a welding rod repair. But that's if the 3 reels are not getting kicked off properly and are not spinning ok.

Thank you