chain of thoughts
every 520 chain by specification has the same center to center pin distance or is a longer somewhat wore out chain. if you have to run a smaller sprocket for the after noon and wear the sprocket and chain plating a little and get things loosened up quite a bit, surfaces will wear in, and you can often then run the intended sprocket that didn't fit with new chain and sprockets. but chain stretch is no good and will cause power loss and sprocket wear and vibration that loosens bolts and will just shorten life of the whole operation. So........chain and sprocket surfaces will wear and break in, but you don't want chain stretch to make things work, measure the pin center to center.....stretched chain is junk.
I agree that 12 tooth on 520 is a poor choice, beats sitting at home but adjustments are in order if you want a smooth running drive system. You might not notice the loss of efficiency on our sno bikes, but tuning mx bikes on the track, 12 tooth counter sprocket and non oring 520 chain is an immediate power loss and will cause noticeable vibration due to the chain turning that tight corner, creates heat and heat is power loss. Better the chain quality, the worse the vibration in the footpegs with 12 tooth.
I have experienced poor chain life for the secondary chain inside the case. Heat related I think. I now run o ring chain with holes drilled in cover below foot peg height letting snow in, chain looks brand new since I installed it in Novemeber, way better for my bike that way.
For me with wide ratio tranny WR, higher ratio/ run out is better, I run about 16.2. better to make 1st gear a very usable tight woods gear and be able to kick it into 5th coming down the road late afternoon headed back to the truck and loaf along at 30 or 40 with low engine rpm.