RD's right. The split collar hangs on by its fingernails, that one has no chance with that much wear on the shaft. The shaft, split collar and thrust washer need to be in good order, the ensemble positions the clutch chainwheel in relation to the crank. Thrust washers came in different thicknesses, and along with shims between the crank drive sleeve and main bearing inner race the chain alignment can be made spot on.
Looks like a combination of worn parts and a bit of a bodger's idea of assembly. From experience factory rivets are head to the clutch, those look likes someone else with a poor grasp of the metallic arts has been there. My guess is the seal ain't even the right one. You'd get a better seal by cleaning off the oil, greasing the shaft and filling the gap with bathroom silicone as a temporary measure. Changing the seal is an engine out job, but the mainshaft can be changed without disturbing the gearbox casing, but with a fair bit of under the bike grovelling.
Pictures of the cush parts would help get a handle on this, I know the hassle of the big nut, but witness marks from the chain are something that needs a good looky.
Plunger Cush Drive is two lobe type, tips of the sliding member pass within the sprocket centre. Unlike the S/A type, the lobes do not mesh closely as pictured by mitch. That's why it looks a little different.
Swarfy
Additional B Series drive sleeve won't fit an A series crank.....the splines are different. So care needed if you're buying on ebay