Bearing spacers are different sizes. The horizontal thickness of the vertical part of the spacer (the part you can see on the outside of the wheel) is about 102/1000s on the rotor side and about 127/1000s on the belt side. However the portion that seats into the wheel is much larger in diameter on the belt side than the rotor side, makes sense as the belt side has to handle more stress. So one cannot get then backwards.
With the rotor heatshield off, the outer half inch or so of the rotor still drug inside the bracket. The wheel and rotor is too far to the right. No gap on the right side between the rotor and the bracket and 1/4 inch or so on the left.
There is no wiggle or slop in the wheel so it would seem the bearings are not (that) bad.
I did notice a clunk inside the wheel when I tipped it left/right. I suspect something inside the wheel has broken and whatever keeps the bearings at their proper oriatation is not working. This allowed the right bearing to press inward or for both bearings to shift leftward, the right spacer to move in as well, the wheel to ride to the right on the axle, and the factory space between the rotor and bracket to disappear.
I have made third spacer (about 3/16 inch thick) to go between the bearing spacer and the bracket to allow clearance. I then tightened the axle nut until the rolling resistance went up. I backed the nut off a bit. I installed the nut with loctite and the overall torque is probably 60ish inch-lbs. I scribed an alignment mark so that I can check it periodically to see if it is backing off.
I didn't want to torque to spec as with the extra spacer it would put more inward pressure on the bearings. The axle is shouldered and factory torque should not push the bearings inward too hard I would think.
Felt good on the ride home from a coworkers house. Guy was an ASE mech and an old Harley rider. Loves my Raider and asked me if Star is still making them. May have a new Raider Rider when is shoulder heals...
Hopefully this all should get me home where I can really tear it all down to investigate the inside of the wheel. I will definitely post those results here as well.
I have photos from my phone. I will add those when I get home.
Thanx for the posts of the fiche and other suggestions.