Miller - yes I have the steel thrust washer on the pilot tip of the output shaft but it doesn't affect the end play on the planetary train because the snap ring is on the larger shaft.
I have to keep reminding myself, that your working on a trans, that had already been messed with (my words for one touched by anyone, besides the factory).
The snap ring you mention does set endplay...but, only for that pinion carrier. Simply allows free play in that cage, in it's limit.
Might get a little confusing here...the #3 thrust washer. Okay, you say you have the steel washer in place. Both on your 69, and my 67, should be the same type (kinda).
My #3 washer was originally the fiber type, that also uses a thin steel washer with it for a rotating surface. But, my fiber washer was breaking down, so I went looking for another. Local shop told me those fiber washers were getting hard to find. Also said an easy swap was a bronze (?) washer, to replace the fiber one, that would last much longer. He happened to have one, and it slipped right in. Don't remember the years, but either one would fit, though only up to a certain later year (1975?).
Not positive (old age), but pretty sure the new, and improved washer was bronze. Any 727 experts out there?
Will admit, from experience, it's easy to put a part in the stack wrong, and it screws everything up.