Clutch Fork Grinding

[Trakter]

Hey guys,
I've lurked around here for he last few years and have always been able to find a thread regarding the problem I had... until recently. So I figured I'd join up and ask away.

I have a 1977 K10 that was originally a 350/SM465/205. I have since swapped a 6.2 diesel from an 83 K5, as well as converted to hydro clutch. I have used a factory hydro bell housing, factory pedals and oem replacement slave and master cylinders. I used a flywheel, clutch fork and clutch set from Oreilly's for a 1985 k10 6.2 diesel. Master cylinder placement was eyeballed from pictures as I had nothing in person get measurements on.

The issue I am having is that the clutch fork is grinding on the pressure plate. When I apply pressure to the clutch pedal the grinding stops. I think it may be as little as 1/4 inch of movement that silences the noise, it doesn't take much.

I am trying to figure out what is out of whack. I remember having some issues with the pilot bushing at first, and I did not do any sort of bench bleeding to the slave or master cylinders. Could it be the master cylinder placement?
Open to all thoughts and ideas.
thanks,
John