I see something different ... and something fairly common with the KLR650.
Take a look at that passenger peg mount plate ... it's been crushed in from a fall(s) (very common) and is subsequently scrapping the swingarm. Should have been caught much earlier. It's the peg bolt coming through the other side of the mount hitting the swingarm when suspension bottoms out. A 30 second tug and it would all be right again ... except now it's torn the Alu swingarm.

So doesn't seem like the swingarm is out of align, maybe just the passenger peg mount plate rubbing.

I've seen this before and also seen it from a bent side stand rubbing on the swing arm.

It's easy enough to determine if the swingarm bearings are shot or not. With the bike jacked up, just wiggle it back and forth. If uncertain, pull the thing apart and have a look at the bearings ... and everything.

Also thinking swingarm bearings are OK unless lots of underwater exploring has been done or if bike is 70K kms or more. It's Japanese, not German.

But with the wheel out you can get a good idea of swingarm bearing condition (by feel) and detect undo slop. I doubt there is much. But while at it, check wheel and hubb bearings and check for bent axle.

I'd bet a good weld up on the swingarm will hold it for life of the bike.