Answer
Groove wall yielding occurs when the axial force $P$ exceeds the compressive yield strength of the groove material. Forensic indicators include 'rolling' of the groove edge, where the sharp corner becomes rounded. This causes the ring to tilt (dish), which can be detected during inspection as a loss of axial end-play. If the ring is no longer parallel to the shaft shoulder, the assembly is nearing failure. In aluminum housings, this is common. Prevention involves: 1) Increasing the groove depth $d$; 2) Using a 'Square-edged' ring instead of a beveled one; or 3) Implementing a 'load-spreader' washer between the component and the retaining ring to distribute the force.