master cyl pushrod adj

I set the push rod to the spec in the service manual .940 with my dial caliper. Installed the master cyl, ready to bleed. I noticed the piston only comes back half way to the large hole in the master cyl. Is this correct, or do I need to remove the master cyl. And adjust so the piston goes back past the hole?View attachment 1715511548

No, but you are close. If you loosen the nuts holding the master cylinder onto the booster, does the piston retract farther? If so, you have extended the pushrod too far.