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It scuffs it since the blade is held in by friction.
Not necessarily. In many cases blade contact with sheath can be avoided or minimized.
Please explain how contact with a sheath when inserting/extracting a blade can be avoided.
I think he meant edge, not blade.
The most important thing when making a good kydex sheath is to use spacers and not just sandwich the blade between kydex. Good retention can usually be achieved by holding on to the handle instead of the blade.