Dana 60 - Pinion depth problem

Let me first lay out what i have then discuss the problem:
1- Dana 60 housing, shorten and bear (no axles etc.)
2- Yukon kit: yk-D60-R 14037
3- Ring and pinion: 4:10 (5-01-91 Dana D 30360 PAL154 41-10

When setting the pinion into the housing i'm unable to achieve the pinion depth of 3.125. I have removed all shims from the housing behind the bearing race and insured that it is flush to the housing (did this several times). There are no shims nor oil baffle installed between the pinion gear and inner bearing. The bearing is sitting flush to the pinion gear. To double check the depth I've laid in the carriage and sure enough the ring and pinion is tight and the carriage is not sitting properly in the housing cratle. I've measured the pinions depth many times, looked for differences in pinion sizes, etc. the only item that looks remotely different are the inner pinion bearings. The new one has long roller bearing while the original factory installed bearing is shorter however with the bearing race they look to be the same thickness, this is hard to measure since the older bearing is not in good shape.

The origin pinion had a shim stack of .043 and the pinion was +4, the replacement pinion is +1. I've had others look at the installation and validate my findings and we are at a lose. Has anyone else experienced this situation and what did they find as the root cause and how was it corrected.

The pinion is sitting about .060 high in the housing and the depth is 3.185

Thanks
Ray