That link shows the early style clutch actuator so is yours electric start & like that as in "74 we had both that shape for electric & later shape for kickstart only, like the "74 175 shape. I guess ya right with the parts pic but just tossing it out there.

I agree with MarkT the clutch basket isn’t seated correct to much space 

This one is the old style with the clutch actuator inside the cover. The 74-76 style and I matched up each part with the diagram and did it right, #17 thrust washer, spacer, than gear that fits over spacer,  than basket. Havent put the kick starter on just the idle gear to see how it lined up. I put a post on thumpertalk and someone said it should be fine. I'm just gonna run it and see what happens

Is the big bearing seated in all the way maybe a shadow is throwing me off from the picture 

Yeah its seated perfectly flush with the case just havent put the cover plate over it yet

Keep in mind you'd have it "right" if you were using the original design crank. 

Take that thick washer out and see what that does.  You might have to add washer thickness back further assembly stack or make other adjustments to something (like pushrod length) but IMHO it would be better than running with gears that much out of line. 

Is there room to space the gear out a 'little' bit more & still get the nut on.

I cant move the gear anymore I was able to get the nut to thread on like 5 times or halfway(will loctite) I'm gonna see what I can do with that clutch to make it closer to the engine by a mm or 2 with still being able to line the idle gear up with that gear behind the basket over that spacer.

If I could find a thin thrust washer with the same diameter as the main shaft it would be perfect. May have to try and find if any brand has a part # for a thin one that would fit.

I found a koyo thrust washer on ebay that I'm gonna get its 2mm thinner, 20mm ID, 35mm OD. That will basically bring it right into place to get that extra 2mm I think it would be fine. Actualy found them cheap on Amazon for like 5$

I put a loose 1mm washer on it just to see the spacing and I'm confident it will be alright now once I get the new washer