Did it get dropped by any chance, any little kids in the house that may have knocked it down.
look and see if the spool is rubbing (or coming close to doing it) on the casing when its spinning....the shaft could be out of alignment.
the reason I mention this is I had bought one used (in like new condition) and it made that same exact sound you are describing.....the spool was coming close to rubbing the casing on it.
I sent it back to the guy I bought it from and he completely refunded my cash....but it does sound pretty similar
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