the braided steel line is not designed the same as the plastic oem line. there is an extra fitting at the master cylinder end to increase the size. this makes for a very weak connection that is not very durable.lasted three rides.
Magura USA Steel Braided Hydraulic Clutch Line
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I opted for this cable over the stock hard-platic line after mine melted through due to the previous owner routing the line over the cylinder head. I highly recommend this cable as there is no cable expansion and since it's braided you don't have to worry about your bike being clutchless while in the middle of the woods!!! Installation was a breeze and the only thing you need is mineral oil which Motosport sells or you can out-source it.
As to how you're routing the clutch cable seems odd, I don't understand how it would cause the line to come in contact with the exhaust. I know on my bike the clutch cable comes in from the right side of the frame and mounts to the left side of the motor. On most mx bikes the exhaust pipe comes off the right side of the motor. unless your talking about a RM85 or something.
But to answer your question, this line will not alleviate the problem of melting when it comes in contact with the exhaust pipe. The urethane protective sheath is only there to protect the stainless steel line.