I tried it out on some 6061 AL using a #5 drill and 1/4-20 Spiral Tap. The clutch never seems to be tight enough, and when it kicks in to "slip" it hammers hard like an impact gun or air chisel. In fact, it will dislodge the tap from its chuck, so it sticks in the hole when I raise the quill, unless I make the clutch adjustment ring as tight as I can make it using a spanner with down pressure on the clutch (the knurled adjustment ring is easier to turn under a load, for some reason). Once I finally got the tap gorilla tight so it didn't fall out, I was trying to adjust the ring some more (the numbers on it don't line up with what I think is supposed to be the indicator line stamped on it, unless I make it super loose) and I accidentally unscrewed the adjustment ring totally. So, I got to learn some things.
A - The top disc of the clutch is a part of the MT2 drive arbor. No wonder it wouldn't come apart. No way to swap arbors on this thing.
B - The "clutch pack" consists of a single disc inside the clutch, which mates with the disc on the arbor. See attached photos.
The machined "bosses" on the discs are assembled so they face each other. There is nothing in between them. No wonder they chatter like the devil when running. But I don't see how such an arrangement could smoothly operate the way I have seen tapping heads in some videos. It seems Grizzly doesn't show photos of their parts listings. So I have no idea what is "supposed to" be in the "clutch pack" mentioned in the parts list, but I suspect something is missing. Wouldn't a clutch normally have some smooth bearing surfaces that meet under pressure? There is a spring washer under the top plate, part of the arbor, which is the only compression device present inside this clutch.
C- I think the tiny brass screw in I mentioned earlier, in the edge of the knurled ring, holds a threaded ring inside it. This arrangement would mean the threads might be "indexed" such that the numbers could align with the indicator mark as the clutch starts to tighten, and then the screw could be tightened to hold the threaded ring in that position. If this was their intention, it is not adjusted correctly.
If anyone has seen the inside of these tapping head clutches, and can tell me if this thing is built correctly, I'd appreciate it. As it stands, with all the hassles so far, I am inclined to return it, since I bought it on Amazon Prime, and just spring for one that actually has a 1/2" straight arbor built in.