8 3/4" sure-grip swap and rebuild questions

Ok I think I got it. Put it back together and set the backlash at .007", got the same pattern. I then took .001" out of the pinion (from .040" to .039" total shim thickness) and the pattern moved just a hair towards the center. It's still smudging a bit as I couldn't get the old gear oil completely removed but I think I can finally put it all back together?

First pic is .040" pinion depth shims, second is .039"

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