Pilot bearing

NO!
Do not drive this way.If the clutch hangs up on a 6000rpm shift, with your gas pedal on the floor, you could be seeing the tach needle swinging by 8000 on it's way back down; ask me how I know,lol. Most engines with HFT cams will not survive this.

#1, it appears to me that your crank was never drilled for a pilot bushing,but is in fact a crank that came out of an automatic equipped car. This crank requires a different pilot bushing than the M/T cranks. The usual fix is to use a pilot bearing that installs in the T/C pilot cavity, like the far left one in post #7.
These auto-cranks are also not drilled deep enough to receive the input shaft. The cure for that is to cut off the trans input short enough to fit, and to chamfer the edge to make an easy lead-in, to the new bearing.

#2, as for the pedal it is supposed to park slightly higher than the brake pedal. You say it sticks in the middle somewhere, but firstly;I don't trust your set-up. I don't think you can mock this up without the TO bearing being on the retainer.
Secondly, find out what the pedal or the associated linkage, might be rubbing on that prevents the pedal from returning properly. Disconnect the TO fork and adjuster rod, find the problem and fix it. Keep in mind that the usual culprit is the Z-bar rubbing on the header. Do what you gotta do.Bend twist, whatever, but get it off the header and make sure it stays off when the engine torques over. I installed a Schumacher torque-contraption. The Z-bar has to be immobilized in the transverse direction, and make sure the downrod is properly oriented; it can fit 4 ways. After you have that properly cycling, and the pilot thing worked out, Put some hi-temp grease in the cavity in the TO bearing carrier, and install all that onto the retainer. Then slide that pigA833 in there, and secure it. Then install the TO fork into the TO bearing clips and simultaneously onto the fulcrum bracket.
The fork must more or less center in the window in the vertical direction, and almost as far to the front as is possible with around a half inch clearance to the bell. If yours is not there, then you may have the wrong fulcrum bracket, or the wrong clutch finger height. Get that sorted, then install the adjuster rod and set the freeplay. If you have a rubber washer on that adjuster, I highly recommend to get rid of it. Sooner or later it will give you trouble. Brewers sells a nice metal swivel to go there. The anti-rattle spring hooks into a hole between the BH and the back of the engine, and sorta pulls all the adjuster parts together so they don't rattle. Simultaneously the TO bearing is slightly pulled off the Clutch Fingers; if you managed to install the fork correctly in the clips..
Now try it.

Ok I think I covered it, hit refresh one more time
Good luck.