Did the kit come with shims? Either way, You need to shim out the entire reverse box to the axle sprocket. Some ppl have used washers. But best to find correct size shim. If need to get a longer one then need, then cut down. But if only 1/8. might get away with a few washers. Maybe a temp fix, until you get a good shim for it. Shim, or what ever you use, needs to fit good on shaft, but thickness needs to slide in on the left side of box, so doesn't rub the outside of it. Should fit inside that gap, or inside those nuts on the left.
When you get to the right line up, put it together. On chain. tighten up the box to the shaft. And give it a short ride. or just go up and back with it for little bit. See if it still lines up. In both cases, where it first lined up, I had to change slightly after testing it out.
But that may be not in this case. Just would double check the alignment after giving it few test runs.
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