Take off the die and grind off a little bit from each side. Not the teeth, just the flat sides.
Use a fine abrasive.
In fact, just lay some 100 grit sandpaper down on something flat and rub until its bright and shiny.
You may have to shim the cutter with a bit of brass shimstock when you put it back in.
It'll cut.
Of course it would help if I had a good picture of just the cutting die removed from the tool,
but from here and the way it looks, just do the sides.
yours Scott