The most common and most likely answer to this crossword clue is the 8 letter word BACILLUS
I've seen this crossword clue in Financial Times
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More clues leading to the result BACILLUS
Buddy explains!

The straight part
We know that "it may produce ill-feeling" is the straight/definition part of the clue. The straight part is often a synonym or definition, in this case it may produce ill-feeling = bacillus.The cryptic/wordplay part
In cryptic crossword there's often an wordplay/cryptic part as well.This part involves a more complex hint, such as an anagram, homophone, hidden word, etc.
Sadly, We don't have an explanation for this specific crossword clue yet.
What does BACILLUS mean?
BACILLUS noun- Any of various rod-shaped, spore-forming aerobic bacteria in the genus Bacillus, some of which cause disease.
- Any bacilliform (rod-shaped) bacterium.
- (by extension) Something which spreads like bacterial infection.