I have also cut a new snap ring groove in a 4 plate drum, to get 5 plates using normal factory type frictions, steels and (thick) pressure plate.
But it's just that placement isn't really optional so you have to consider the stacking and the placement movement with wear, as it 'is' possible to have a steel catch on the old grove!
That can happen if you are not "careful" where you cut the snap ring groove.
On a 4 plate drum, you have just enough room to cut the groove for 5 plates, BUT...
You MUST use a factory thick top pressure plate.
That plate "covers" the lower 4 plate groove and there is no danger of having a steel plate get caught in the groove.
The general "rule of thumb" is...
You can cut a 4 plate drum to get 5 factory type plates in with a factory thick top pressure plate.
You can cut a 3 plate drum to get 4 factory type plates in also with a factory thick top pressure plate.
You CANNOT get 5 plates in a 3 plate drum with factory type plates. Or any type plate for that matter...
If you try to cut a 3 plate drum to get 5 plates...
You WILL have a problem with one of the steel plates getting caught in the original 3 plate snap ring groove.
Also beware there are some factory drums that have 2 grooves already cut.
The lower groove for 3 plates and the top groove fits 4 plates.
If you have one of those, you're stuck, you cannot get 5 plates in it.
That lower 3 plate groove limits you to 4 factory plates max.
ALTO makes a "PowerPack" for the direct drum where you can get as many as 7 or 8 friction plates in a 4 plate drum. The ALTO PowerPack uses very thin steels, frictions, and pressure plate to get more in the drum.
I like this "idea", except where/when slippage exists, because the thin steels can't absorb as much heat as the thicker examples, so they'll likely suffer blueing and warp sooner! Also, I've had instances where even thicker plates are split/broken so . . . . . . And the frictions (steel carrier) can't be any thinner as I've had the inner-splines just roll-formed outward and disengaged from the hub.
Good point about the thin plates, they "can" overheat and warp. However...
I build 4R100 diesel units that have a factory 5 plate drum. (no you cannot swap that drum into a C6, I've tried)
When a customer requests a "HD" 4R100 build cuz they are gonna be towing heavy, and/or boosted the power on the 7.3L IDI... then...
I use the ALTO PowerPack and get 8 plates in the direct drum.
In 7 years of building these HD 4R100's I've never had one fail from having the thin frictions and steels.
The ALTO plates are hardened, both friction core internal splined steel and outer splined steel.
They will pound "notches" into the clutch hubs before the splines fail.
As far as warpage... they just don't.
If the clutch pack slips enough to cause heat warpage of the thin plates,
you have other problems that are causing the slippage in the first place.
That all said... the first time I saw those thin ALTO plates I thought..
"Oh boy, here we go... thin plates are gonna warp" but time has proven them to be very reliable.
And that said... there "are" other thin plates out there for other units, and they "do" have a warping problem.
Not the ALTO ones for the C6 and 4R100.
The increased friction surface area seems to be able to take the heat and provides more/better holding power.
YMMV