Washer goes above the bearing
Oldfart on runryder (Phil) made it clear the washer goes ontop of the bearing, not under it (this was in response to me asking the same question). Also -that's the way my first hawk IV arf was assembled - that tipped me off for my 2nd kit. You may want to double check that as it seems you currently have it below the bearing.
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The instructions say for me to put it above the Mast Stoper. But as you can see in the photo (GREEN ARROW), the picture shows the washer above the bearing.
But I did as the instructions said (RED ARROW), I put it above the Mast Stoper.
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