Bad New Engine `Need HELP!!
Whirley Bird...if that parts view is correct for your engine then it's ball raced so won't have the shim washer. It seems there was an assumption made that you have a plain bearing engine and they're the only ones that need that shim (they don't use a split cone either).
What I'm curious about is if the engine feels free to turn (other than at the top of the stroke) without a prop and then gets hard to turn when the prop is put on and tightened. If so then there's a problem with bearing clearances in that tightening the prop forces the inner race hard back and binds the bearing. That's cause for a replacement engine. It's rare but tolerances can gang up to cause it.