Lomapaseo: Please correct me if I'm wrong but are you saying that as the compressor blade tip makes contact with the abradable seal as the seal is worn down ( as it should do in this situation) it could produce a temporary burning smell/smoke. Once it's worn down, which shouldn't take long there is enough blade tip clearence now that there is no more burning smell/smoke produced so if all other parameters are correct it can be run at idle and therefore not require an inflight shutdown?
Yes "could"