Small chips left on the spindle nose of the lathe should be cleaned to avoid:

Cleaning small chips off the spindle nose of a lathe is crucial to ensure proper alignment and function of work holding devices. When chips accumulate, they can create an imbalance, which leads to run out. Run out refers to the deviation from true circular motion, which can negatively affect the precision of the work being machined. This misalignment can cause issues during operations, resulting in inaccurate machining or poor surface finishes.

In contrast, while excessive lubrication, increased tool wear, and surface rust are valid concerns in a machining environment, they are not the primary reasons for the necessity of cleaning chips from the spindle nose. Ensuring a clean spindle nose primarily focuses on achieving proper work holding and maintaining accuracy in lathe operations.