This is great info Ferdman and spit64!!! So from what you guys are thinking it is coming from the fan clutch area after all!

Whats confusing is the clutch spins freely with the typical resistance that I think feels normal from what I can remember from one that's working properly, and there's no grinding sound or indication that it's bad other than the fact that it tends to run hot at idle and in slow stop and go traffic.

You two mention the "fan clutch bearing bracket" and the "bearing at the engine block behind the fan", are these two items one in the same?

I don't have an exploded view drawing of the engine and am wanting to clarify this!

Is it the pulley that drives the fan with the serpentine belt mounted to a bracket on the front top of the engine, and what you two are suggesting is that it's the bearing on this bracket / pulley that's going out?

I've attached two images, with one having an arrow pointing to this pulley. The second one shows an arrow pointing to the chips I'm seeing, which are blowing up on the left side of the engine behind that pulley.