Can't really tell how serious noise is without vid, I agree with others, cheap clutches are noisy. If it still works, lub the bushing and keep using it.
I like my engine/ mini to be rattle free as possible and run them without fenders, chain guard, etc. For the clutch, if you shim the hub with end space washers so it's mounted tight to the crank, it will get rid of some of the noise, my experience anyway. Once you get rid of all the rattles 97cc engines have a fairly cool sound IMO.
Don't overdo it or may have trouble getting clutch off crank, has to be just right, just enough to take out the slop. OK to be sloppy, but will be a little more noisy.
As I understand it, the bushing is only used while the clutch is slipping. Once locked up, the shoes tight against the bell hold the sprocket in position.