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Dana 60 u joint U-bolt too short

Bunch of great feedback in here. I need to make sure it was seated fully as it may not have been seated as much as I thought based on the comments in here. It does have the lock ring as you noted.

I'll measure the cup and cap and make sure they fit as it seems that's my problem.
Most likely the cap you are trying to fit is 1.125 where you need a 1.062. You should get this joint DANA SPICER 5-7437X if thats the case.
 
Thing is that U-bolt yoke never came on a B-body. It was an Imperial part.

A 1969 used 7290 u joints, not 1330.

So you have a mixture of parts there.
 
It looks like you have this u-bolt yoke conversion in your car (86 Direct Connection catalog P4120714 it uses a combo u joint I think 7290/1330) I had to put that in my car back in the 80’s because the stock yoke was discontinued by Chrysler.
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upload_2021-8-25_12-21-59.jpeg
 
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