That certainly is a pile of Loctite on the axle. With that much Loctite so close to the needle bearing it would compromise the life of the bearing especially if some of it weaped into the bearing which is possible with the marginal seal on the bearing itself. Axles are easily damaged when removing them with Loctite on the splines, which my understanding is recommended by Polaris, Polaris provides an axle cap to place on the end of the axle for a pulley puller to push against to remove the pulley. Back yard mechanics many times try to drive the axle out with a hammer. The threaded end of the axle is quite soft and even with the Polaris supplied cap it could get damaged with such an extreme amount of Loctite.
Now back to my original question, "how did the Loctite cause the problem?" I still can't see how the Loctite can cause your lose of power when you corner to the right. I think there is still more to the story. Keep us informed. Thanks!
You're scaring me mniron. I was hoping that was the issue. We will find out soon.