wrote

The fact that it's burning on the sides indicates to me that the side of
the
bit is rubbing on the wood, like there is excessive runout on your drill
or
bit.

Runout could be the problem, but I think it is more likely that the burning
is because the outer teeth have lost their "set."

When this type of bit is new, (for new woodworkers in the group) the row of
small teeth around the outside are slightly further out than the main
diameter of the bit. When they wear and get sharpened, the outer point is
what wears down. The only way to fix a bit like that is to knock the teeth
back out a little, or reduce the diameter of the sides of the bit a bit.
--
Jim in NC