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Sorry I missed your question. I'd say that is normal. If you could see whats happening when cutting, chips are created. It would be logical those chips can extend past the outside edge of the blade. Unlike a steel drill bit, the ice auger head is its own guide so there is going to be a little float. You have an 8 blade with an 8" dia.. Most or if not all blades made in the past 5 years are 7 11/16th". Add the above explanation and you end up at around 8".
I've seen some variants in older blades that did have a larger diameter and some with twice the thickness. Seen a few with a diamond shaped center point too.