I left the clutch clearances as is, it is will within specs anyway.
I flipped the pressure plates on the clutches to use the unused side, the shitty side on the forward clutch can be seen now.
Few things I am not sure off, IIRC the front servo had only 1 spring as below picture, I searched some documents from the Transgo kit which states the HP engines have only the small diameter spring installed without any other springs.
I am 99% sure but just to confirm this is correct?
Another thing I found when I installed the pump, I do not hear a clear "thud" sound coming from the rear clutch pack when testing with compressed air.
I removed the complete assembly and tested the clutches again on the bench with the Input shaft assembly incl. pump and both clutch packs work, when the rear clutch engages it lifts the upper assembly a little.
When installing everything in the transmission I feel not comfortable all clutch frictions are fully in, though all teeth are perfectly aligned when i remove it, the assembly feels a bit wobbly and does not drop in snug.
Even with the pump installed and the bolts hand tight the input shaft has a little wobble and has no axial play, so something is not seated correct.
The lugs on the forward band drum are just over fully engaged with the gear shell, i see on most pictures and video's online it is somewhere halfway in instead.
I guess this causes the rear clutch not to function properly and gives the issues with the input shaft, i got fed up and hungry so i left it for today, just still wondering where it is hanging up.
As I said it seems like all clutch plates are aligned and engage.