If you try hard enough. Sand paper will cut and damage steel bushings. Depending on the type of sandpaper it may be coated with garnet, carbide or any number of other compounds that will eat away at steel.
A more solid piece of carbide will, especially with repeated or prolonged contact. Carbide is used to machine some metals in a lathe.
Lower quality busing will get eat up more quickly all of it than better quality ones. Softer metals followed by plated metals would be more susceptible to fast wear than high speed steels or stainless. But, all bushings should be considered consumables and replaced when they get out of tolerance for your needs.
That is why I only use bushing time get close to size quickly and finish the piece based on measurements from the individual pieces in the hardware kit to be installed.
I have said this many times here. So what if bushings get worn down from touching with tools. I kind of like it when this happens and in fact many times do it on purpose. I always use the calipers to make my final cuts because I do not trust any bushing for exact measurements. If the bushing is lower than the blank needs to be, you now can cut the blank down to exact size and not have the bushing in the way. Yes it is still there to support the blank. Have been doing this since I started making pens. Calipers are your friend.
From some wise person way back in 2005 or 2006: "Bushings are consumables" (not intended to be permanent like tools or the lathe). Once that is learned, then what JT said above kinda takes over and the bushings will last longer.