Welcome to Restoration-Mini!!
No takers for my question about the inner layshaft?Normally you would not want to see a sharp edge on a shaft as it transitions from one size to another, as those create stress risers and they can break there. However, if you look closely in the second pic you can see there is a small radius at that edge - MED sells the exact same shaft for their race gearboxes, so it must be OK!